Delta Regional Authority

Performance and Accountability Report

September 30, 2021
Delta Regional Authority

September 30, 2021

Federal Co‐Chairman States’ Co‐Chair        

Vacant Governor Mike Parson

Alternate Federal Co‐Chairman Alternate States’ Co‐Chair

Vacant Mr. Shad Burner

STATE GOVERNORS, DESIGNEES, AND ALTERNATES

Alabama

Governor Kay Ivey

Mr. Kenneth Boswell (Designee)

Ms. Crystal Talley (Alternate)

Arkansas

Governor Asa Hutchinson

Mr. Clint O’Neal (Designee)

Ateca Foreman (Alternate)

Illinois

Governor J.B. Pritzker

Ms. Brandi Bradley

(Designee & Alternate)

Kentucky

Governor Andy Beshear

Ms. Dennis Keene

(Designee & Alternate)

Louisiana

Governor John Bel Edwards

Ms. Leslie Durham

(Designee & Alternate)

Mississippi

Governor Tate Reeves

Ms. Anne Hall Brashier

(Designee & Alternate)

Missouri

Governor Mike Parson 

Mr. Shad Bruner (Designee)

Mr. Robert Knodell  

(Alternate)

Tennessee

Governor Bill Lee

Ms. Brooxie Carlton  

(Designee)

Mr. Brian Kelsey (Alternate)
Delta Regional Authority Service Area
Delta Regional Authority

Performance and Accountability Report

September 30, 2021

Table of Contents

Page(s)

Agency Head Letter                                                                                                                 1        

Section 1 ‐ Management Discussion and Analysis 2‐17    

Section 2 ‐ Performance Report 18‐24        

Section 3 ‐ Financial Section    

   Independent Auditor’s Report                                      25‐28        

   Basic Financial Statements    

Balance Sheets 29

Statements of Net Cost 30

Statements of Changes in Net Position 31

Statements of Resources (Budgetary and Non‐Budgetary) 32‐33

Notes to Financial Statements 34‐44    

   Other Information

Combining Balance Sheets 45‐46

Combining Statements of Net Cost 47‐48

Combining Statements of Changes in Net Position 49‐50

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget 51‐52

Schedule of Expenditures 53

Schedule of Grants Made    54‐55
REGIONAL Hr,ADQUARTERS: 

236 SHARKEY AVENUE, STE. 400 

CLARKSDALE, MS 38614 

PHONE: (662) 624-8600 

FAX: (662) 624-8537 

Alabama • Arkansas • Illinois • Kentucky 

Louisiana • Mississippi • Missouri • Tennessee 

www.dra.gov 

WASHINGTON, D.C. OFFICE: 

444 NORTH CAPITOL, N.W., STE. 445B 

WASHINGTON, D.C. 20001 

PHONE: (202) 434-4870 

FAX: (202) 434-4871 

Shalanda D. Young, Acting DirectorThe Office of Management and Budget725 17th Street NWWashington, DC 20503Dear Director Young:Enclosed you will find the Delta Regional Authority’s (DRA) Performance and Accountability Report for Fiscal Year 2021. This report is an accurate and comprehensive account of the Authority’s performance for FY 2021 and includes comparative financial statements in FY 2020 and FY 2021. DRA continues to be in full compliance with The Accountability for Tax Dollars Act of 2002 and under the current administration, DRA maintains its long-term commitment to setting and sustaining the highest standards in financial integrity and compliance. The report by the auditors of Fred T. Neely & Co, PLLC contains an unmodified opinion on the financial statements in this document and DRA continues to meet each new challenge and expectation presented by the U.S. Congress.In the absence of a Federal Co-Chairman or Alternate Federal Member, DRA was unable to make grant awards in FY 2021 through its primary funding programs including the States’ Economic Development Assistance Program (SEDAP), Community Infrastructure Fund (CIF), and Public Works and Economic Adjustment Assistance (PWEAA). Once a Federal Member is formally nominated by the President and confirmed by the U.S. Senate, DRA will obligate these funds to new projects. Even in the absence of a Federal Member, DRA executed on its mission to deploy regionally impactful programs and initiatives as evidenced in this report.It is with great pleasure that DRA submits its FY 2021 Performance and Accountability Report. Performance data included in this report has been complied to provide the most complete and accurate results available. DRA will continue to grow as an agency and invest its resources in projects, programs, and initiatives that help provide Delta residents with the necessary infrastructure, job training, and business development resources to assist job creation, build communities, and improve lives.Sincerely,Kemp MorganInterim Chief of StaffDirector of Project Development & Management
Section 2 – Management’s Discussion and Analysis   
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

2

Introduction

As management of Delta Regional Authority (DRA or the Authority), we offer readers of DRA’s

Performance and Accountability Report this narrative overview and analysis of the financial activities of

DRA for the fiscal year ended September 30, 2021. We encourage the readers to consider the

information presented here in conjunction with information furnished within this report.

The Delta Regional Authority is a federal‐state partnership serving 252 counties and parishes in an eight‐

state region. Led by a Federal Co‐Chairman and the Governors of each participating state, DRA is

designed to remedy severe and chronic economic distress by stimulating economic development and

fostering partnerships that have a positive impact on the region's economy. DRA helps economically

distressed communities capitalize on other federal and state programs focused on basic infrastructure

development, transportation improvements, business development and job training services.

Congress mandated (7 U.S.C. §2009aa) that DRA shall provide funding for the following four categories:

 Basic public infrastructure in distressed counties and isolated areas of distress;

 Transportation infrastructure for the purpose of facilitating economic development in the region;

 Business development, with emphasis on entrepreneurship; and

 Job training or employment‐related education, with emphasis on use of existing public

educational institutions located in the region.

Congressional stipulations include:

 The Authority will allocate at least 75% of Authority funds for use in distressed counties; and

 The Authority shall allocate at least 50% of any funds for transportation and basic public

infrastructure projects.

The following is a discussion and analysis of the operating results and financial position of DRA, created

by the Delta Regional Authority Act of 2000. The Authority'sreauthorization extended by the Agricultural

Act of 2018.

As listed in the Management's Discussion and Analysis and throughout the Performance and

Accountability Report, DRA continues to emphasize performance, accountability and sustainability

within its programs. Please review this document in conjunction with the annual financial statements

and accompanying notes.

   
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

3

Fiscal Year 2021 Counties and Parishes

Distressed counties are defined as those counties that are one percent higher than the national average

for unemployment for the most recent 24‐month period and/or 80% or less than the national per capita

income. Non‐distressed counties are those under one percent of the national average for unemployment

and more than 80% of national per capita income.

DRA’s enabling legislation requires the Authority to update its distressed and non‐distressed county

designation annually. The tabulation for Fiscal Year 2021 resulted in 232 distressed counties and parishes

and 20 non‐distressed counties (see list below).

Arkansas Louisiana Mississippi Alabama ‐ None

Arkansas Ascension Madison

Pulaski Cameron Rankin Kentucky

East Baton Rouge McCraken

Illinois Jefferson Missouri

White Lafourche Cape Girardeau

Williamson Pointe Coupee

Plaquemines Tennessee

Rapides Fayette

St. Charles Shelby

West Baton Rouge

Non‐Distressed List as of September 30, 2021

Alabama Dallas Monroe Louisiana Iberia St. Helena

Barbour Escambia Perry Acadia Iberville St. James

Bullock Greene Pickens Allen Jackson St. John the Baptist

Butler Hale Russell Assumption Jefferson Davis St. Landry

Choctaw Lowndes Sumter Avoyelles La Salle St. Martin

Clarke Macon Washington Beauregard Lincoln St. Mary

Conecuh Marengo Wilcox Bienville Livingston Tangipahoa

Caldwell Madison Tensas

Distressed List as of September 30, 2021
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

4

Arkansas Fulton Ouachita

Louisiana

(continued) Franklin St. Bernard

Ashley Grant Phillips Catahoula Grant Union

Baxter Greene Poinsett Claiborne Morehouse Vermillion

Bradley Independence Prairie Concordia Natchitoches Washington

Calhoun Izard Randolph De Soto Orleans Webster

Chicot Jackson Searcy East Carroll Ouachita West Carroll

Clay Jefferson Sharp East Feliciana Red River West Feliciana

Cleveland Lawrence St. Francis Evangeline Richland Winn

Craighead Lee Stone

Crittenden Lincoln Union Mississippi Humphreys Sharkey

Cross Lonoke Van Buren Adams Issaquena Simpson

Dallas Marion White Amite Jasper Smith

Desha Mississippi Woodruff Attala Jefferson Sunflower

Drew Monroe Benton Jefferson Davis Tallahatchie

Bolivar Lafayette Tate

Illinois Hamilton Pope Carroll Lawrence Tippah

Alexander Jackson Pulaski Claiborne Leflore Tunica

Franklin Johnson Randolph Coahoma Lincoln Union

Gallatin Massac Saline Copiah Marion Walthall

Hardin Perry Union Covington Marshall Warren

DeSoto Montgomery Washington

Kentucky Graves Muhlenberg Franklin Panola Wilkinson

Ballard Henderson Todd Grenada Pike Yalobusha

Caldwell Hickman Trigg Hinds Quitman Yazoo

Calloway Hopkins Union Holmes

Carlisle Livingston Webster

Christian Lyon Missouri Madison Scott

Crittenden McLean Bollinger Mississippi Shannon

Fulton Marshall Butler New Madrid Ste. Genevieve

Carter Oregon St. Francois

Tennessee Gibson Lauderdale Crawford Ozark Stoddard

Benton Hardeman Madison Dent Pemiscot Texas

Carroll Hardin McNairy Douglas Perry Washington

Chester Haywood Obion Dunklin Phelps Wayne

Crockett Henderson Tipton Howell Reynolds Wright

Decatur Henry Weakley Iron Ripley

Dyer Lake

Distressed List as of September 30, 2021 (continued)
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

5

Organizational Structure

The DRA Board is comprised of Governors from the eight states in the DRA region along with a Federal

member, who is appointed by the President as the Federal Co‐Chairman and confirmed by the U.S.

Senate. The Governors annually appoint a States' Co‐Chairman, and in FY 2021, Governor Mike Parson

of Missouri was elected to serve as the eleventh States' Co‐Chairman. The DRA statute requires the

Board to hold an annual quorum meeting, which compels the attendance of a majority of the states'

Governors. For all other DRA meetings, Governors may appoint a designee/alternate to serve in their

absence.  

The relationship between the Federal Member and Governors is a partnership in which all board

members share the fiduciary responsibility of the Authority. Moreover, the Board's responsibilities are:

to establish and approve investments for economic development to the region; assess the state of the

region; facilitate and recommend interstate cooperation among region members; develop model

legislation; support and train local development districts; and encourage private investment and

cooperate with state economic development programs within the region. Board decisions require

affirmation from the Federal member and a majority of participating Governors.  

The Federal Co‐Chairman maintains an office within the DRA office. At the end of FY 2021, the position

of Federal Co‐Chairman was vacant, but DRA is expected to have a new Federal Co‐Chairman shortly

after the current fiscal year end. Additionally, the DRA office employs twelve non‐federal employees

who carry out the day‐to‐day operations within the following areas: Finance and Administration; Project

Development and Management; Policy Programs and Federal Affairs; and Public Engagement and

Communication. The DRA organizational chart can be found on the following page.   
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

6

Organizational Chart

Management of Delta Regional Authority

DRA utilizes the General Services Administration (GSA) for assistance in the management of DRA’s

economic development obligations, disbursements, and the financial reporting of its federally‐

appropriated dollars. Because of the Authority’s relatively small size, the use of GSA has been very cost‐

effective. GSA also assists the Authority with compliance with many federal‐mandated requirements.

State administrative funds are held by banks located in the DRA Region and are accounted for by the

Director of Finance and Administration.     

   

DRA completed its 18th year of compliance with the Accountability of Tax Dollars Act of 2002. DRA has

consistently initiated additional controls and expanded compliance testing to ensure the financial

integrity of the Authority.   

   
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

7

Financial Highlights

The following is a summary of changes in assets, liabilities, revenues, expenditures and net position at

September 30, 2021, as compared to the prior year:

 Total assets increased $7,207,174 or 10% in 2021 compared to an increase of $10,262,855 or

16% in 2020;  

 Total liabilities decreased $2,021,867 or 25.4% in 2021 compared to an increase $674,706 or

9.2% in 2020;   

 Total net program costs increased $535,473 or 2% in 2021 compared to an increase of

$744,326 or 3% in 2020;   

 Financing sources of operations increased $535,473 or 2% in 2021 compared to an increase

$744,326 or 3% in 2020; and

 Net position increased $9,229,041 or 14% in 2021 compared to an increase of $9,588,149 or

17% in 2020.   

Overview of the Financial Statements

The Management’s Discussion and Analysis introduces DRA’s principal statements. The principal

statements include: (1) balance sheets, (2) statements of net cost, (3) statements of changes in net

position, (4) statements of resources (budgetary and non‐budgetary), and (5) notes to financial

statements. DRA also includes in this report additional information to supplement the principal

statements.

Balance Sheet – The balance sheet is a summary of assets, liabilities, and net position for each fiscal

year.  It includes assets in possession or managed by the entity exclusive of items subject to stewardship

reporting (assets), amounts owed by the entity (liabilities), and amounts which comprise the difference

(net position).

2021 2020 $ Change   % Change

Total assets $   82,741,297   $ 75,534,123   $   7,207,174 10%

Total liabilities         5,952,062        7,973,929      (2,021,867) ‐25.4%

Total net position       76,789,235      67,560,194        9,229,041 14%

Total liabilities & net

position $   82,741,297   $ 75,534,123   $   7,207,174 10%

As of September 30,
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

8

2020 2019 $ Change   % Change

Total assets $   75,534,123   $ 65,271,268   $ 10,262,855 16%

Total liabilities         7,973,929        7,299,223           674,706 9.2%

Total net position       67,560,194      57,972,045        9,588,149 17%

Total liabilities & net

position $   75,534,123   $ 65,271,268   $ 10,262,855 16%

Summary Balance Sheet  

As of September 30,

The FY 2021 and 2020 increases in total assets were largely attributable to federal appropriations for

economic development purposes. Total liabilities decreased in FY 2021 due to normal trade policies

during FY 2021.  Net position increased in FY 2021 compared to FY 2020. An increase in net position

indicates that DRA’s financial condition improved in FY 2021.  

Statements of Net Cost – The statements of net cost are designed to show separately the components

of the net cost of the reporting entity’s operations for the period.  The net cost of operations is the gross

cost incurred by the reporting entity less any exchange revenue earned from its activities.  The gross cost

of a program consists of the full cost of the outputs produced by that program plus any non‐production

costs that can be assigned to the program. Non‐production costs are costs linked to events other than

the production of goods and services.   The net cost of a program consists of gross cost less related

exchange revenues.  By disclosing the gross and net cost of the entity’s programs, the statements of net

cost provide information that can be related to the outputs and outcomes of the programs and activities.

2021 2020 $ Change % Change

Program Costs

Gross costs $    26,004,985   $ 24,632,062   $     1,372,923 6%

Less: earned revenue         (1,847,957)      (1,010,507)          (837,450) 83%

Total net program

costs $    24,157,028   $ 23,621,555   $        535,473 2%

Summary Statement of Net Costs  

Years Ended September 30,
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

9

2020 2019 $ Change % Change

Program Costs

Gross costs $    24,632,062 $  24,668,449 $         (36,387) 0%

Less: earned revenue         (1,010,507) (1,791,220)                  ‐ 780,713 44%

Total net

program costs $     23,621,555 $  22,877,229 $        744,326 3%

Summary Statement of Net Costs

Years Ended September 30,

The FY 2021 increase in total net program costs is attributable to an increase in earned revenue.

Statements of Changes in Net Position – The statements of changes in net position report the change in

net position during the reporting period. Net position is affected by changes to its two components:

cumulative results of operations and unexpended appropriations. The statement format is designed to

display both components of net position separately to enable the user to better understand the nature

of changes to net position as a whole.

2021 2020 $ Change % Change

Unexpended appropriations

Beginning balance 67,560,194 $   $  57,972,045 $    9,588,149 17%

Change in unexpended appropriations 9,229,041              9,588,149          ‐ (359,108) 4%

Total unexpended appropriations 76,789,235 $   $  67,560,194 $    9,229,041 14%

Cumulative results of operations

Beginning balance $                    ‐ ‐ $                    ‐ $                    0%

Net cost of operations 24,157,028          23,621,555          535,473 2%

Net change                       ‐ ‐                       ‐                       0%

Cummulative results of operations                       ‐ ‐                       ‐                       0%

Net position 76,789,235 $   $  67,560,194 $    9,229,041 14%

Years Ended September 30,
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

10

2020 2019 $ Change % Change

Unexpended appropriations

Beginning balance 57,972,045 $   $  52,807,136 $    5,164,909 10%

Change in unexpended appropriations 9,588,149              5,164,909       4,423,240 86%

Total unexpended appropriations 67,560,194 $   $  57,972,045 $    9,588,149 17%

Cumulative results of operations

Beginning balance $                    ‐ ‐ $                    ‐ $                0%

Net cost of operations 23,621,555          22,877,229          744,326 3%

Net change                       ‐ ‐                       ‐                       0%

Cumulative results of operations                       ‐ ‐                       ‐                       0%

Net position 67,560,194 $   $  57,972,045 $    9,588,149 17%

Summary Statement of Changes in Net Position

Years Ended September 30,

The decrease in total financing sources in 2021 is related to a decrease in disbursements of SEDAP funds

expended in FY 2021 and FY 2020.

Statements of Resources (Budgetary and Non‐Budgetary) – The statements of resources (budgetary

and non‐budgetary) and related disclosures provide information about how budgetary resources were

made available, as well as their status at the end of the year. It is the only financial statement

predominantly derived from an entity’s budgetary general ledger in accordance with budgetary

accounting rules, which are incorporated into generally accepted accounting principles (GAAP) in the

United States of America for the federal government.

2021 2020 $  Change % Change

Resources (budgetary & non‐

budgetary) 44,943,042 $      $      49,590,991 $      ‐ (4,647,949) 9%

Status of budgetary resources 42,277,811 $      $      46,854,974 $      ‐ (4,577,163) 10%

Net outlays, end of year 23,230,341 $      $      19,525,515 $      3,704,826 19%

Unpaid obligated balance, net 44,365,231 $      $      63,944,986 $   ‐ (19,579,755) 31%

Years Ended September 30,

Summary Statement of Resources (Budgetary & Non‐Budgetary)
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

11

2020 2019 $  Change % Change

Resources (budgetary & non‐

budgetary) 49, $     590,991 $     39,224,020 $   10,366,971 26%

Status of budgetary resources 46,854,974 $     $     37,079,675 $     9,775,299 26%

Net outlays, end of year 19,525,515 $     $     20,165,595 $       ‐ (640,080) 3%

Unpaid obligated balance, net 63,944,986 $     $     50,046,550 $   13,898,436 28%

Years Ended September 30,

Summary Statement of Resources (Budgetary & Non‐Budgetary)

Notes to Financial Statements – The notes to financial statements are an integral part of the financial

statements and provide more detailed data.

Limitations of the Financial Statements

The principal financial statements have been prepared to report the financial position and results of

operations of the entity, pursuant to the requirements of 31 U.S.C. 3515(b). While the statements have

been prepared from the books and records of the entity in accordance with GAAP for federal entities

and the formats prescribed by the President’s Office of Management and Budget, the statements are, in

addition to the financial reports, used to monitor and control budgetary resources, which are prepared

from the same books and records.   

Audit Opinion: Unmodified

Restatement: No

Material Weakness(es)

Beginning

Balance New Resolved Consolidated

Ending

Balance

Total Material Weaknesses                 ‐ ‐         ‐            ‐                  ‐             

Year Ended September 30, 2021

Summary of Financial Statement Audit

Grants Oversight & New Efficiency (GONE) Act

The objective of the Grants Oversight and New Efficiency (GONE) Act is to identify and close out expired

grants. The covered grants are those within an agency’s cash payment management system that have

been expired for two or more years and have not been closed out. DRA reviewed its close‐out population

of federal grants and cooperative agreements and found instances where either a grant award or

cooperative agreement with the period of performance ending on or prior to September 30, 2019, had

not been closed out. Delays in grant and cooperative agreement closeout, and challenges to be

addressed pursuant to the GONE Act follow the table below.
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

12

Category No. of 2‐3 Years No. of >3‐5 Years

Grants and cooperative agreements

with undisbursed balances 46 $3,854,717 51 $1,834,638

Summary of Grants Oversight & New Efficiency (GONE) Act

As of September 30, 2021

Challenges

Delays in Grant and Cooperative Agreement Award Closeout  ‐ As noted in DRA's enabling legislation,

"Congress finds that certain States and local communities of the region, including local development

districts, may be unable to take maximum advantage of Federal grant programsfor which the States and

communities are eligible because: (1) the States or communities lack the economic resources to provide

the required matching share; or (2) there are insufficient funds available under the applicable Federal

law authorizing the Federal grant program to meet pressing needs of the region." These limitations are

often the reason DRA funds are needed as first dollars in on some of these grants.  These limitations

speak to other intrinsic limitations some of these communities experience, that being, other resources

to ensure the projects are completed on time and on budget.  

Changes in the Fund Obligation Process  ‐  DRA has obligated funds over the course of four

administrations. The first administration obligated with a signed grant agreement; the second

administration obligated with a board approved (voted on) project.  Typically grant agreements were

signed and returned soon after, but there have been occasions where the signed grant agreement took

much longer to return.  This issue is exacerbated by an extremely small administrative staff with little

continuity over DRA's 19 years of existence.

Planned Corrective Actions

DRA will address the staffing situation to divide administrative tasks proportionally. DRA will be looking

to purchase an accounting system which will accommodate financial accounting for both DRA

administrative costs and grant funding. There are still a great number of outstanding grants and

cooperative agreements, but more could be done to claw back unused and underutilized funding. DRA

will improve training with the Local Development Districts to expedite the identification of these

projects, allowing DRA to start the claw back process sooner. Likewise, DRA will need to further educate

our board members on the risks associated with certain projects and how to identify projects that are

capable of moving faster.  Lastly, the demographics of the Delta region must be taken into consideration

and the inherent challenges that exist here. Some leeway must be given to these communities that

struggle to obtain federal funds.
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

13

The Anti‐Deficiency Act

Public Law 31 USC S 1341, Limitations on Expending and Obligating Amounts, 31 USC S 1342, Limitation

on Voluntary Services, and 31 USC S 1517, Prohibited Obligations and Expenditures, and 31 USC S 1501,

Documentary Evidence Requirement for Government Obligations make up the core of this Act.

31 USC, Section 1341, Limitations on Expending and Obligating Amounts  

An officer or employee of the U.S. Government or of the District of Columbia government may not‐‐‐ 

 make or authorize an expenditure or obligation exceeding an amount available in an

appropriation or fund for the expenditure or obligation;

 involve either government in a contract or obligation for the payment of money before an

appropriation is made unless authorized by law;

31 USC, Section 1342, Limitation on Voluntary Services

An officer or employee of the U.S. Government or of the District of Columbia government may not accept

voluntary services for either government or employ personal services exceeding that authorized by law

except for emergencies involving the safety of human life or the protection of property.

31 USC, Section 1517, Prohibited Obligations and Expenditures

An officer or employee of the U.S. Government or of the District of Columbia government may not make

or authorize an expenditure or obligation exceeding‐‐‐ 

 an apportionment; or

 the amount permitted by regulations prescribed under section 1514(a) of this title;

31 USC, Section 1501, Documentary Evidence Requirement for Government Obligations

An amount shall be recorded as an obligation of the U.S. Government only when supported by

documentary evidence of‐‐‐ 

 A binding agreement

 A loan agreement

 Order required by law

 A grant or subsidy

 A liability from litigation

 Employment of persons

 Public utilities services

 Other

Violations of the Anti‐Deficiency Act

Making or authorizing an obligation or expenditure:

 In excess of an appropriation

 Before an appropriation is made
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

14

 In excess of an apportionment

 In excess of agency regulations (e.g., allotment)

 Accepting voluntary services (except in an emergency); employing personal services

Violations of these rules will subject the officer or employee to:

 Appropriate administrative discipline

 Suspension from duty without pay

 Removal from office

Intentional violation of the Anti‐Deficiency Act will subject the officer or employee to:

 Fines up to $5,000

 Imprisonment up to 2 years

 Or both

Reporting a Violation  

A violation report has to be prepared by the head of the offending agency and sent to:

 The President (through OMB)

 The Speaker of the House

 The President of the Senate

 The Comptroller General

The violation report must contain:

 Date, amount, account involved in violation

 The name and position of the person responsible

 Discipline imposed

 Statement about the adequacy of administrative control system

 Statement of actions taken to prevent it from ever happening again.

For the year ended September 30, 2021, Delta Regional Authority complied with the Anti‐Deficiency Act.

The Prompt Payment Act (PPA)

The Prompt Payment Act was enacted to ensure the federal government makes timely payments. Bills

are to be paid within 30 days after receipt and acceptance of material and/or services, or after receipt

of a proper invoice whichever is later. When payments are not made timely, interest should be

automatically paid. The basic requirements of the PPA for government finance offices are to:

 Date stamp all incoming invoices.

 Make payments no earlier than 23 days and no later than 30 days from the invoice date.

 Take discounts only within the terms offered.
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

15

 Pay interest automatically when payment is late.

 Report performance based on statistical sampling to the Office of Management and Budget.

Procedures and Guidelines DRA uses to comply with the Prompt Payment Act

Mandatory IMP AC (government credit card program) for all purchases less than $2,500 may eliminate

hours of collection time on smaller dollar invoices. Under the current VISA card program, vendors are

paid usually within 2‐3 days of shipment of the order. The merchant bank then collects from the

government. The government purchase order is e‐mailed to the vendor, input into their order processing

system and then invoiced electronically to the payment office. When information is not re‐keyed into

systems, the chances for errors in the order and billing processes are reduced if not eliminated. Delta

Regional Authority complied, in all relevant respects, with the Prompt Payment Act.

Data Accountability and Transparency Act (DATA Act) of 2014 31 USC S6101, PL 113‐101

The purpose of the DATA Act is to establish government‐wide financial data standards and increase the

availability, accuracy, and usefulness of Federal spending information. The Act's vision was to provide

reliable, timely, secure, and consumable financial management data for the purpose of promoting

transparency, facilitating better decision making, and improving operational efficiency.  

Delta Regional Authority complied, with all material respects, with the DATA ACT and reported

information quarterly, as required during the fiscal year.

Fraud Reduction and Data Analytics Act (FRDAA) of 2015

Under the Fraud Reduction and Data Analytics Act (FRDAA) of 2015, agencies are required to report on

efforts to reduce fraud. Standards require agencies to identify fraud risk factors and programs with

increased susceptibility for fraud. The report must include information on the agency’s progress in

implementing:

 Financial and administrative controls established pursuant to the act,

 The fraud risk principle in the StandardsforInternal Control in the Government, and OMB Circular

A‐123, Management’s Responsibility for Internal Control, with respect to leading practices for

managing fraud risk,

 Progress in identifying risks and vulnerabilities to fraud, including with respect to payroll,

beneficiary payments, grants, large contracts, purchase and travel cards, and

 Progress on establishing strategies, procedures, and other steps to curb fraud.
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

16

Control

Environment Risk Assessment

Control

Activities

Information &

Communication

Monitoring

Activities

Demonstrates

commitment to

integrity and ethical

values.

Define objectives

and risk

tolerances.

Designs control

activities.

Uses relevant,

quality

information.

Performs ongoing

monitoring

activities.

Exercises oversight

responsibilities.

Identifies,

analyzes and

responds to risk.

Selects and

develops

general system

controls.

Communicates

internally.

Evaluates issues

and remediates

deficiencies.

Establishes

structure, authority

and responsibility.

Assess fraud risk. Deploys &

implements

control

activities.

Communicates

externally.

Demonstrates

commitment to

competence.

Identifies,

analyzes and

responds to

change.

Framework of Internal Control

Year Ended September 30, 2021

DRA maintains an annual Financial Internal Control and Risk Management Plan that identifies, through

quantitative and qualitative analysis, transactional areas that are susceptible to inaccuracies and/or

fraud. The plan contains specific process areas that are tested throughout the fiscal year to ensure the

process results are accurate and reasonable. Government‐issued travel cards have been identified as a

program with a high risk for fraud.

The following controls are in place to prevent/mitigate fraud within the government travel card program:

 Reduced employee‐held travel cards to $2,500,

 A government travel card SOP is published defining the roles and rules of the program. The

handbook is reviewed and updated as needed, and

 Reduce the number of employees eligible for a government travel card.

The following administrative controls are in place to detect potential fraud within the travel card

program:

 The Staff Accountant reviews purchase card holders’ statements and matches supporting

receipts to billed charges monthly and communicates with cardholders regarding unmatched or

suspicious charges. When cardholders deny unmatched or suspicious charges, the Accounting

Supervisor refers such charges to the Director of Finance & Administration for review and

disposition,
Delta Regional Authority

Management’s Discussion and Analysis

Year Ended September 30, 2021

17

 The Director of Finance & Administration rejects payments for unknown or suspicious charges

and requests the bank to investigate those purchases deemed suspect,

 After an investigation, the bank either provides copies of receiptsto prove the employee initiated

the charge or issues credit to the cardholder.  

Other areas reviewed for the annual Financial Internal Control and Risk Management Plan include:

 Payroll, and how fraud could be perpetuated through the time management system. The

Accounting/HR Supervisor prepares the payroll for bi‐weekly submission to the Director of

Finance/Administration, who reviews the submission for changes of personnel or salary from the

prior month and budget and compares names to authorized personnel and salaries to

authorized/approved salaries.

 Contracts over $25,000, and how procurement procedures can be manipulated through fraud.

Below are additional strategies, procedures, and other steps employed by the agency to curb fraud:

 Prevent – educate employees on the care and use of a travel card,

 Prevent – conduct detailed fraud risk assessments to focus management attention,

 Deter/Detect – Promote effective reporting tools for suspicious or inappropriate activities

(whistleblower hotline),  

 Anti‐Fraud Policy/Training – communicate a policy and train employees to recognize suspicious

or inappropriate activities,

 Deter/Detect – Response to fraud allegations of how it will be investigated/resolved.

DRA’s senior management believes that this policy sends a clear message that senior management is

committed to preventing and detecting fraud committed against the organization.

Contacting DRA’s Financial Management

This financial report is designed to fulfill the obligations of DRA as it relates to the Accountability for Tax

Dollars Act of 2002.  The report details the financial position of DRA as of September 30, 2021 and 2020,

and demonstrates DRA’s accountability for all funds and appropriations received.   

If you have any questions about this report or need additional information, please contact the Delta

Regional Authority via telephone by calling (662) 624‐8600 or mail by directing inquiries to the Director

of Finance &Administration, Delta Regional Authority, 236 Sharkey Ave, Suite 400, Clarksdale, MS 38614.

Other Contact/Reports

Internet Home Page http://dra.gov

Fraud/Whistleblower http://dra.gov/accountability/promoting‐a‐transparent‐government/#fraud

Agency Financial Report http://dra.gov/accountability/promoting‐a‐transparent‐government/

Strategic Plan   http://dra.gov/funding‐programs/strategic‐economic‐development‐plans‐by‐state/
Section 2 – Performance Report
Delta Regional Authority

Performance Report  

Year Ended September 30, 2021

18

Overview

The Government Performance and Results Act of 1993 ("GPRA") requires all federal agencies to submit

a report to Congress on actual program results at the end of each Fiscal Year along with its audited

financial statements outlined in the Office of Management and Budget (OMB) Circular No. A‐136,

Financial Audit Manual. This report includes a summary of results on the following DRA programs and

initiatives:  

Project Development and Management

 States’ Economic Development Assistance Program (SEDAP)

 Community Infrastructure Fund (CIF)

 Local Development Districts (LDD) Training/Administration

Strategic Programs & Initiatives

 Delta Workforce Program (DWP)

 Delta Leadership Institute (DLI)

o Delta Leadership Network (DLN)

 Delta Doctors

 Delta Research

Project Development and Management

States’ Economic Development Assistance Program (SEDAP)

The States’ Economic Development Assistance Program is DRA’s primary investment program. Since

2002, DRA has leveraged more than $229 million of its own appropriations with more than $4.1 billion

in other public and private sector dollars. SEDAP investments are subject to Federal Priority Eligibility

Criteria and must help improve the following in Delta communities:

 Basic Public Infrastructure

 Transportation Infrastructure

 Workforce Training and Education

 Business Development and Entrepreneurship

At least 50% of SEDAP funds must be invested in basic public infrastructure and transportation

infrastructure.  

At least 75% of SEDAP funds must be invested in economically distressed counties and parishes.

Community Infrastructure Fund (CIF)

The Community Infrastructure Fund helps strengthen the economic viability of Delta communities by

making investments into projects addressing flood control, basic public infrastructure, and local

transportation improvements throughout the Delta region.

In the absence of a Federal Co‐Chairman or Alternate Federal Member, DRA was unable to make grant

awards in FY 2021 through its primary funding programs including the States’ Economic Development
Delta Regional Authority

Performance Report  

Year Ended September 30, 2021

19

Assistance Program (SEDAP), Community Infrastructure Fund (CIF), and Public Works and Economic

Adjustment Assistance (PWEAA). Once a Federal Member is formally nominated by the President and

confirmed by the U.S. Senate, DRA will obligate these funds to new projects.

GOAL 2. Strengthened Infrastructure: Strengthen the Delta’s physical, digital, and capital connections

to the global economy.  

Aligned with DRA’s Regional Development Plan III: Goal 2 – Strengthened Infrastructure, SEDAP, CIF and

PWEAA collectively direct public and private investments into basic public infrastructure and

transportation projects that can facilitate business expansion, company relocation, and job growth in

Delta communities.  

Local Development Districts (LDD) Training/Administration

Per DRA'sstatue, local development districts(LDDs) are the Authority'sfront‐line project developers and

managers. The LDDs within the DRA footprint provide technical assistance, application support and

review, and other services to DRA and the entities in their districts wishing to apply for DRA funding.

LDDs help identify effective and impactful economic development projects for consideration for DRA

investment. All projects, regardless of the funding source, are developed in coordination with the

appropriate LDD. LDD staff review and certify that each project is legitimate and meets the parameters

of DRA programs.

Based on guidance from the LDD Advisory Board, LDDs who are out of compliance with certification

requirements are ineligible to submit applicationsfor DRA funding. These compliance requirements have

helped ensure consistent improvements in the quality of applications over time. Guidance is given

annually during the LDD training workshop andprovided publicly in DRA's administrative program

manual.

These actions help ensure DRA stakeholders are receiving the most up to date technical assistance from

their LDD when applying for DRA funding.

GOAL 3. Increased Community Capacity: Facilitate local capacity building within Delta communities,

organizations, businesses, and individuals.  

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, DRA’s annual

LDD Training/Administration provides executive directors and project development staff with best

practices, innovative strategies, and resources to boost the economic development potential of their

regional footprints.  

Programs and Initiatives

Delta Workforce Program

In 2018 DRA launched the Delta Workforce Program (DWP), an initiative designed to build long‐term

community capacity and increase economic competitiveness across the Mississippi River Delta region

and Alabama Black Belt. DWP encompasses two grant programs including the Workforce Opportunity

for Rural Communities (WORC) initiative and the Delta Workforce Grant Program.
Delta Regional Authority

Performance Report  

Year Ended September 30, 2021

20

In partnership with the U.S. Department of Labor (DOL) Employment and Training Administration (ETA)

and the Appalachian Regional Commission (ARC), approximately $29.2 million in grants are available

under the WORC initiative (administered by DOL ETA) to support workforce training and education in

rural communities across the Delta and Appalachian regions. To complement this federal partnership,

DRA facilitates pre‐award technical assistance workshops and webinars, makes available $1.5 million in

grants under the Delta Workforce Grant Program, and offers post‐award technical assistance to

grantees.

The Delta Workforce Program prioritizesinvesting in communities and regionsthat have been negatively

impacted by economic transition and need assistance to help build their workforce pipelines and

strengthen their economies.

Investment priorities include:

 Supporting industry‐led workforce training;

 Building collaborative talent pipelines;

 Supporting or enhancing industry clusters; and

 Accelerating local or regional economic development.

In FY 2021 DRA invested $1,687,013 into 13 projects across seven of the eight DRA states, including:

STATE CITY ORGANIZATION AMOUNT

AR Little Rock Restore Hope, Inc. $94,880

Restore Hope, Inc. will use DRA funding to establish a recovery‐to‐work program in White County for individuals affected

by substance use disorder. The investment is projected to train 16 individuals for high‐demand careers in the metal

fabrication industry.

AR Pine Bluff Southeast Arkansas College $150,000

Southeast Arkansas College will use DRA funding to establish a certificate program in Supply Chain Transportation

Technology to prepare program participants for commercial truck licensure. The investment is projected to train 45

individuals for high‐demand careers in the transportation and logistics industry.

KY Owensboro Green River Area Development District $150,000

The Hire to Operate (H2O) project will use DRA funding to support the Kentucky Rural Water Association’s Registered

Apprenticeship Program. Apprentices will become certified Water/Wastewater Systems Operation Specialists through

Related Technical Instruction and on‐the‐job training. H2O will elevate the required skills to meet progressing

technology standards and create a talent pipeline for local utilities to replenish the qualified pool of operators. The

investment is projected to train 10 individuals in Henderson, McLean, Union, and Webster counties.

KY Paducah West Kentucky Community & Technical College $106,580

West Kentucky Community & Technical College will use DRA funding to support its LPN‐to‐RN Accelerated Bridge

program. The program will pair an online preparatory course with a simulation lab and mentoring to improve exam

pass rates, helping participants to complete the RN program in as little as one year. This ultimately will alleviate a
Delta Regional Authority

Performance Report  

Year Ended September 30, 2021

21

critical shortage of RNs entering the workforce while also improving employment opportunities, earning potential, and

long‐term employment. The investment is projected to train up to 45 LPNs with advanced nursing education.

LA Baton Rouge Research Park Corporation $150,000

Research Park Corporation will use DRA funding to expand Apprenti Louisiana, a nationally recognized registered

apprenticeship program. The expansion will develop apprenticeship programs for 13 new employer partners within 57

parishes to meet the growing demand for tech talent across Louisiana. The investment is projected to train up to 48

individuals.

LA New Orleans University of Holy Cross $150,000

The University of Holy Cross, in partnership with Delgado Community College, will use DRA funding to support the

growing food service and manufacturing sector by providing scholarship support for culinary professionals working

toward an accelerated Bachelor of Science degree in Culinology®. The investment is projected to train at least 10

individuals.

LA Thibodeaux Nicholls State University $149,983

Nicholls State University will use DRA funding to provide enhanced training and support activities to a regional

workforce aligned with a state, regional, and community economic development strategy as well as leverage partner

resources with grant funding to expand training capacity, create a sustainable program, and increase cybersecurity

knowledge. The investment is projected to train up to 147 incumbent, displaced, civilian, and redundant workers in

cybersecurity/cyber‐defense.

MO Portageville Delta Area Economic Opportunity Corporation $147,300

The Delta Area Economic Opportunity Corporation will use DRA funding to provide apprenticeships, on‐the‐job training,

and agricultural entrepreneurial opportunities to meet the identified workforce needs of the agribusiness and

agriculture‐adjacent industries. The investment is projected to train up to 50 individuals throughout six counties in

Southeast Missouri.

MO West Plains Missouri State University ‐ West Plains $130,000

Missouri State University – West Plains will use DRA funding to purchase needed equipment for advanced workforce

training in robotics. The investment is projected to train 50‐75 individuals, including dislocated workers, new entrants

in the workforce, incumbent workers, and underrepresented groups such as women, veterans, minority groups, and

individuals with disabilities.

MS Clarksdale Griot Arts $129,060

Griot Arts will use DRA funding to provide a 16‐week job training program that will establish an

internship‐to‐job pipeline for local employers. The program will reduce the fiscal burden internships create for

employers while preparing the future workforce for sustainable careers. The investment is projected to train up to 35

individuals.

TN Decaturville Rural Health Association of Tennessee $150,000
Delta Regional Authority

Performance Report  

Year Ended September 30, 2021

22

The Rural Health Association of Tennessee will use DRA funding to create a “pre‐apprenticeship” program for nursing

assistants and nursing aids designed to help alleviate the regional nursing shortage. The investment is projected to train

up to 500 individuals.

TN Jackson theCO $76,800

theCO will use DRA funding to launch the Dev Catalyst Alumni Program, which willsupport workforce readinesstraining,

develop a portfolio showcase, establish a peer mentorship network, and bridge connections to regional job and

internship opportunities in computer science, web development, and data management. The investment is projected to

train up to 1,800 individuals.

TN Memphis ProGeny Place $102,410

ProGeny Place, in coordination with The GradUS Project, will use DRA funding to enroll domestic

violence victims into a newly designed, four‐week Food‐Based Manufacturing and Distribution industry certification

program at Southwest Tennessee Community College. The investment is projected to train 20 individuals.

GOAL 1. Improved Workforce Competitiveness: Advance the productivity and economic

competitiveness of the Delta workforce.

Aligned with DRA’s Regional Development Plan III: Goal 1 – Improved Workforce Competitiveness, the

Delta Workforce Program makes grants and provides technical assistance to organizations focusing on

improving workforce training and industry‐specific skills in urban and rural communities alike.

Investments are targeted in areas seeking to bolster their economic development efforts by

strengthening the talent pipelines for existing businesses and high‐growth industry clusters.  

Founded in 2005, the Delta Leadership Institute (DLI) supports local economic development by building

leadership skills and fostering collaboration among established community leadersin the public, private,

and nonprofit sectors to improve the economic and social opportunities of the Delta region and its

people. DLIrelies on the administrative, programming, and curricularsupport from a consortium of three

university partners: Arkansas State University, the University of Louisiana at Monroe, and the University

of Arkansas Sam M. Walton School of Business.

The year‐long DLI Executive Academy is designed to provide professional leadership development and

policy training in the issues most challenging to Delta communities. The Executive Academy held five

sessions(virtually and in‐person) in FY 2021 that focused on community capacity, policy and governance,

workforce competitiveness, and public infrastructure. The Delta Leadership Institute will graduate 24

fellows from its sixteenth class in January 2022 (original event postponed due to COVID‐19).

Delta Leadership Network (DLN)

The Delta Leadership Network comprises the alumni of the Executive Academy and is tasked with

maintaining these relationships among regional leaders so as to foster regional collaboration, resource

sharing, and continued education to help these leaders address the Delta’s most pressing issues. Now

more than 600 community leaders make up the DLN, through which they continue their engagement

with the Delta Leadership Institute at state meetings, an annual Delta Leadership Network conference,

and events with new Executive Academy classes.
Delta Regional Authority

Performance Report  

Year Ended September 30, 2021

23

GOAL 3. Increased Community Capacity: Facilitate local capacity building within Delta communities,

organizations, businesses, and individuals.  

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, DLI and DLN

supports a wide array of leaders across the region through the Executive Academy, DLN conference, and

continuing education programs.

Delta Doctors

In an effort to increase the number of doctorsserving Delta residents, the Delta Regional Authority began

implementing the Delta Doctors program in 2003. The program allowsforeign physicians who are trained

in the US to work in medically underserved areas for three years by providing those physicians with J‐1

Visa Waivers. Most choose to stay farlonger once they develop a patient base. Those in the Delta Doctors

program do not take jobs away from U.S.‐born physicians. Instead, they provide services in areas where

there would otherwise be a shortage of physicians.  

The impact of Delta Doctors in the region is realized both by access to quality affordable healthcare and

the economic impact the doctors make on the community in which they reside and practice. On average,

each doctor participating in the program is estimated to create 5 full‐time jobs within their clinics and

offices, and an additional 3.4 full and part‐time jobs within the communities where they work.  

In FY 2021, DRA submitted 117 J‐1 Visa Waiver recommendations to the U.S. Department of State for

physician placement in medically underserved areas/health professional shortage areas throughout the

252 counties and parishes making up the DRA service area.  

J‐1 Recommendation Summary for Fiscal Year 2021

State J‐1 Applications Processed

Alabama 28

Arkansas 2

Illinois 15

Kentucky 7

Louisiana 29

Mississippi 15

Missouri 10

Tennessee 11

TOTAL 117

GOAL 1. Improved Workforce Competitiveness: Advance the productivity and economic

competitiveness of the Delta workforce.

Aligned with DRA’s Regional Development Plan III: Goal 1 – Improved Workforce Competitiveness, Delta

Doctors improves the health and wellness of the Delta’s workforce to elevate productivity and

competitiveness of the region’s employers by providing American‐trained, foreign physicians to health

professional shortage areas (HPSA) and medically underserved areas (MUA).
Delta Regional Authority

Performance Report  

Year Ended September 30, 2021

24

Delta Research

Established in 2020, the Delta Research initiative is designed to assess the challenges and opportunities

of the region based on available research, demonstrations, investigations, and evaluations in fields

related to economic and community development. This initiative spurs regional collaboration to harness

institutional knowledge within organizations located and/or working in the DRA region. DRA’s research

and data collection/assessment is designed to assist policymakers and agency partners better

understand the region’s challenges so they can make more informed, evidence‐based decisions to

adequately address them. In FY 2021, DRA commissioned three studies including a Labor Market and

Workforce Report, Broadband Mapping Project, and Economic Impact Assessment of the Gulf

Intercoastal Waterway.  

In January 2021, DRA entered into a cooperative agreement with the Center for Regional Economic

Competitiveness (CREC) to develop a labor market and workforce report examining the state of the

workforce and workforce development systems in the Delta Region through in‐depth quantitative and

qualitative analyses.  

In March 2021, DRA entered into a cooperative agreement with Geo Partners LLC to survey and establish

a baseline of existing broadband access, broadband speeds, and broadband providers throughout the

Delta. The Delta Broadband Mapping project uses an innovative crowdsourcing software solution to

collect data on internetservice providersin the DRA region to identify strategic investment opportunities

and leverage existing broadband infrastructure. As of September 2021, DRA has collected approximately

25,000 unique data points throughout the region.

In June 2021, DRA entered into a cooperative agreement with the University of Southern Alabama to

conduct the Gulf Intercoastal Waterway Economic Impact Assessment including: 1) a narrative report

with strategic recommendations; 2) county‐level data sets supporting economic impact modeling; and

3) GIS maps and electronic dashboard for web‐based data visualization of results.

GOAL 3. Increased Community Capacity: Facilitate local capacity building within Delta communities,

organizations, businesses, and individuals.

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, the Delta

Research initiative commissions studies and reports that assess key demographic, economic, social, and

quality of life data indicators to provide local leaders with key insights related to economic development

trends throughout the region compared with statewide and national figures.  
Section 3 – Financial Section

   
105 West President • P.O. Box 894 • P.O. Box 842 • Greenwood, Mississippi 38935

P: 662.453.7112 •F: 662.453.7123

25

Independent Auditor’s Report

State Co‐Chair’s

Members of the Board Delta Regional Authority  

Clarksdale, Mississippi

In our audits of the fiscal years 2021 and 2020 financial statements of Delta Regional Authority (the

Authority), we found  

 the Authority’sfinancialstatements as of and for the fiscal years ended September 30, 2021 and 2020,

are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting

principles;

 no material weaknesses in internal control over financial reporting based on the limited procedures

we performed; and  

 no reportable noncompliance for fiscal year 2021 with provisions of applicable laws, regulations,

contracts, and grant agreements we tested.

The following sections discuss in more detail (1) our report on the financial statements, required

supplementary information (RSI) and other information included with the financial statements; (2) our

report on internal control over financial reporting; and (3) our report on compliance with laws,

regulations, contracts, and grant agreements.

Report on the Financial Statements  

In accordance with auditing standards generally accepted in the United States of America and the

standards applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States, and Office of Management and Budget (OMB) Bulletin No. 21‐

04, Audit Requirements for Federal Financial Statements, we have audited the Authority’s financial

statements. The Authority’s financial statements comprise the balance sheets as of September 30, 2021

and 2020; the related statements of net cost, changes in net position, and resources (budgetary and non‐

budgetary) for the fiscal years then ended; and the related notes to the financial statements.   

We conducted our audit in accordance with U.S. generally accepted government auditing standards. We

believe that the audit evidence we obtained is sufficient and appropriate to provide a basis of our audit

opinions.  

Management’s Responsibility

Authority management is responsible for (1) the preparation and fair presentation of these financial

statements in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring,

and presenting the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing

and presenting other information included in documents containing the audited financialstatements and

auditor’s report, and ensuring the consistency of that information with the audited financial statements

and the RSI;  and (4) maintaining effective internal control over financial reporting, including the design,

Robert K. VanDevender, CPA

Lance Mohamed, CPA    

Stribling W. Hargett, CPA

W. Lee Mattox, CPA

William A. Adams, CPA

Gay G. Moss, CPA

Fred T. Neely, CPA  

(1897 – 1967)  

Billy Joe Killebrew, CPA

   (1942 – 2010)  

Ralph F. Neely, CPA

   (1927 –          )
26

implementation, and maintenance of internal control relevant to the preparation and fair presentation

of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility isto express an opinion on these financialstatements based on our audit. U.S. generally

accepted government auditing standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free from material misstatement. We

are also responsible for applying certain limited procedures to RSI and other information included with

the financial statements.

An audit of financial statements involves performing procedures to obtain audit evidence about the

amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the auditor’s assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor considers

internal control relevant to the entity’s preparation and fair presentation of the financial statements in

order to design audit procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no

such opinion. An audit of financial statements also involves evaluating the appropriateness of the

accounting policies used and the reasonableness of significant accounting estimates made by

management, as well as evaluating the overall presentation of the financial statements. Our audits also

included performing such other procedures as we considered necessary in the circumstances.   

Opinion on Financial Statements

In our opinion, the Authority’s financial statements present fairly, in all material respects, the Authority’s

financial position as of September 30, 2021 and 2020, and its net cost of operations, changes in net

position, and resources(budgetary and non‐budgetary) for the fiscal yearsthen ended in accordance with

U.S. generally accepted accounting principles.

Other Matters

Required Supplementary Information

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board

(FASAB) require that the RSI be presented to supplement the financial statements. Although the RSI is

not a part of the financialstatements, FASAB considersthisinformation to be an essential part of financial

reporting for placing the financial statements in appropriate operational, economic, or historical context.

We have applied certain limited procedures to the RSI in accordance with U.S. generally accepted

government auditing standards, which consisted of inquiries of management about the methods of

preparing the RSI and comparing the information for consistency with management’s responses to the

auditor’s inquiries, the financial statements, and other knowledge we obtained during the audit of the

financial statements, in order to report omissions or material departures from FASAB guidelines, if any,

identified by these limited procedures. We did not audit and we do not express an opinion or provide

any assurance on the RSI because the limited procedures we applied do not provide sufficient evidence

to express an opinion or provide any assurance.  

Other Information   

The Authority’s other information contains a wide range of information, some of which is not directly

related to the financial statements. This information is presented for purposes of additional analysis and

is not a required part of the financial statements or the RSI. We read the other information included with

the financial statements in order to identify material inconsistencies, if any, with the audited financial

statements. Our audit was conducted for the purpose of forming an opinion on the Authority’s financial

statements. We did not audit and do not express an opinion or provide any assurance on the other

information.
27

Report on Internal Control over Financial Reporting

In connection with our audit of the Authority’sfinancialstatements, we considered the Authority’sinternal

control over financial reporting, consistent with our auditor’s responsibility discussed below. We

performed our procedures related to the Authority’s internal control over financial reporting in

accordance with U.S. generally accepted auditing standards.  

Management’s Responsibility

The Authority’s management is responsible for maintaining effective internal control over financial

reporting, including the design, implementation, and maintenance of internal control relevant to the

preparation and fair presentation of financial statements that are free from material misstatement,

whether due to fraud or error.  

Auditor’s Responsibility

In planning and performing our audit of the Authority’s financial statements as of and for the year ended

September 30, 2021, in accordance with the U.S. generally accepted government auditing standards, we

considered the Authority’s internal control over financial reporting as a basis for designing audit

procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the

financial statements, but not for the purpose of expressing an opinion on the effectiveness of the

Authority’s internal control over financial reporting. Accordingly, we do not express an opinion on the

Authority’s internal control over financial reporting. We are required to report all deficiencies that are

considered to be significant deficiencies or material weaknesses. We did not consider all internal controls

relevant to operating objectives, such as those controls relevant to preparing performance information

and ensuring efficient operations.  

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with

governance, management, and other personnel, the objectives of which are to provide reasonable

assurance that (1) transactions are properly recorded, processed, and summarized to permit the

preparation of financial statements in accordance with U.S. generally accepted accounting principles, and

assets are safeguarded against lossfrom unauthorized acquisition, use, or disposition, and (2) transactions

are executed in accordance with provisions of applicable laws, including those governing the use of budget

authority, regulations, contracts, and grant agreements, noncompliance with which could have a material

effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect

and correct, misstatements due to fraud or error.

Results of Our Consideration of Internal Control over Financial Reporting

Our consideration of internal control was for the limited purpose described above, and was not designed

to identify all deficienciesin internal control that might be material weaknesses and significant deficiencies

or to express an opinion on the effectiveness of the Authority’s internal control over financial reporting.

Given these limitations, during our audit, we did not identify any deficiencies in internal control over

financial reporting that we considered to be material weaknesses. However, material weaknesses may

exist that have not been identified.  

  
28

Intended Purpose of Report on Internal Control over Financial Reporting

The purpose of this report is solely to describe the scope of our consideration of the Authority’s internal

control over financial reporting and the results of our procedures, and not to provide an opinion on the

effectiveness of the Authority’s internal control over financial reporting. This report is an integral part of

an audit performed in accordance with U.S. generally accepted government auditing standards in

considering internal control over financial reporting. Accordingly, this report on internal control over

financial reporting is not suitable for any other purpose.

Report on Compliance with Laws, Regulations, Contract, and Grant Agreements

In connection with our audits of the Authority’s financial statements, we tested compliance with selected

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s

responsibility discussed below. We caution that noncompliance may occur and not be detected by these

tests. We performed our tests of compliance in accordance with U.S. generally accepted government

auditing standards.

Management’s Responsibility

The Authority’s management is responsible for complying with laws, regulations, contracts, and grant

agreements applicable to the Authority.  

Auditor’s Responsibility

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts,

and grant agreements applicable to the Authority that have a direct effect on the determination of

material amounts and disclosures in the Authority’s financial statements, and perform certain other

limited procedures.  Accordingly, we did not test compliance with all laws, regulations, contracts, and

grant agreements applicable to the Authority.  

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant

agreements disclosed no instances of noncompliance for fiscal year 2021 that would be reportable under

U.S. generally accepted government auditing standards. However, the objective of our tests was not to

provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to

the Authority. Accordingly, we do not express such an opinion.

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

The purpose of this report is solely to describe the scope of our testing of compliance with selected

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that testing,

and not to provide an opinion on compliance. This report is an integral part of an audit performed in

accordance with U.S. generally accepted government auditing standards in considering compliance.

Accordingly, this report on compliance with laws, regulations, contracts, and grant agreements is not

suitable for any other purpose.  

Fred T. Neely & Company, PLLC

Greenwood, Mississippi

November 15, 2021
Delta Regional Authority

Balance Sheets

September 30, 2021 and 2020

2021 2020

Assets

Intragovernmental:

Fund balance with Treasury 77,737,898 $    $   71,300,877

Total intragovernmental 77,737,898            71,300,877

Other than ingragovernmental/With the public:

Cash 4,749,915                  3,984,555

Accounts receivable, net 205,678                        172,348

General property and equipment, net 47,806                            76,343

Total other than ingragovernmental/With the public 5,003,399                  4,233,246

Total assets 82,741,297 $    $   75,534,123

Liabilities

Intragovernmental:

Employer contributions and payroll taxes payable $                      ‐ $             2,681

Liability for advances and prepayments 3,798,757                  5,512,312

Total intragovernmental 3,798,757                  5,514,993

Other than ingragovernmental/With the public:

Accounts payable 1,658,302                  1,900,052

Grants and other payables 376,983                        429,635

Accrued funded payroll and leave 118,020                        129,249

Total other than ingragovernmental/With the public 2,153,305                  2,458,936

Total liabilities 5,952,062                  7,973,929

Net position

Unexpended appropriations ‐ all other funds

(consolidated totals) 76,789,235            67,560,194

Cumulative results of operations ‐ all other funds

(consolidated totals)                          ‐ ‐                         

Total net position 76,789,235            67,560,194

Total liabilities and net position 82,741,297 $    $   75,534,123

The accompanying notes are an integral part of these financial statements. 29
Delta Regional Authority

Statements of Net Cost

Years Ended September 30, 2021 and 2020

2021 2020

Program cost

Council of Inspectors General on Integrity and Efficiency

Fund balance with Treasury 26,004,985 $          $          24,632,062

Less: earned revenue (1,847,957)                            (1,010,507)

Total net program costs 24,157,028                          23,621,555

Net cost of operations 24,157,028 $          $          23,621,555

The accompanying notes are an integral part of these financial statements. 30
Delta Regional Authority

Statements of Changes in Net Position

Years Ended September 30, 2021 and 2020

2021 2020

Unexpended appropriations

Beginning balance 67,560,194 $   $   57,972,045

Appropriations received 30,000,000           30,000,000

Appropriations used (21,488,645)        (20,877,850)

Other:

Cost of operations absorbed by member states and others 1,959,877               2,031,792

Cost of operations absorbed by Rural Community Assistance

Program (RCAP) 1,423,040               1,170,224

Disbursements of funds provided by member states and others (1,242,191)             (1,530,745)

Disbursements of Rural Community Assistance Program (RCAP)

funds (1,423,040)             (1,205,272)

Change in unexpended appropriations 9,229,041               9,588,149

Total unexpended appropriations $  76,789,235 $   67,560,194

Cumulative results of operations:

Beginning balance 67,560,194 $   ‐ $                     

Appropriations used 21,488,645           20,877,850

Other:

Imputed financing from costs absorbed by others 3,152                               7,688

Disbursements of RCAP funds 1,423,040               1,205,272

Disbursements of funds provided by member states and others 1,242,191               1,530,745

Net cost of operations     24,157,028      23,621,555

Change in cumulative results of operations                        ‐ ‐                        

Cumulative results of operations

Net position $  76,789,235 $   67,560,194

The accompanying notes are an integral part of these financial statements. 31
Federal

State and

Other RCAP Combined

Budgetary

Non‐

Budgetary

Non‐

Budgetary

Budgetary and

Non‐Budgetary

Budgetary resources

Unobligated balance from prior year budget

authority, net (discretionary and mandatory) 7,660,892 $        $    3,929,933 $       (30,700) $      11,560,125

Appropriations (discretionary and mandatory) 30,000,000         ‐                         ‐                                30,000,000

Spending authority from offsetting

collections (discretionary and mandatory)                           ‐       1,959,877      1,423,040           3,382,917

Total resources $     37,660,892 $    5,889,810 $   1,392,340 $      44,943,042

Status of budgetary resources

New obligations and upward adjustments $        ‐ 4,233,871 $                      ‐ $                     $        4,233,871

Unobligated balances/unexpended funds,

end of year

Apportioned, unexpired accounts 34,925,277                         ‐ ‐                                34,925,277

Unapportioned, unexpired accounts (1,498,256)          ‐                         ‐                                 (1,498,256)

Unexpired unobligated balance, end of year 33,427,021         ‐                         ‐                                33,427,021

Unexpended funds                           ‐       4,647,619           (30,700)           4,616,919

Unobligated/Unexpended balance, end of year 33,427,021 4,647,619 (30,700) 38,043,940

Total budgetary resources $     37,660,892 $    4,647,619 $       (30,700) $      42,277,811

Change in obligated balances (memorandum)

(non‐add) entries)

Unpaid obligated balance, net,

beginning of year 63,774,386 $      $       119,255 $         51,345 $      63,944,986

New obligations and upward adjustments 4,233,871                 1,242,191      1,423,040           6,899,102

Unavailable 134,401               ‐                         ‐                                      134,401

Gross outlays (23,831,782)             (1,307,091)     (1,474,385)        (26,613,258)

Recoveries of prior year unpaid obligations                            ‐                          ‐                         ‐                              ‐ 

Unpaid obligated balance, net, end of year

Undelivered orders 42,544,051                         ‐ ‐                                42,544,051

Accounts payable 1,766,825 54,355              ‐                                  1,821,180

Total obligated balance, net, end of year $     44,310,876 $           ‐ 54,355 $                     $      44,365,231

Outlays, net  

Outlays, net (total) (discretionary and

mandatory) 23,831,782 $      $      (652,786) $         51,345 $      23,230,341

Agency outlays, net (discretionary and

mandatory) $     23,831,782 $      (652,786) $         51,345 $      23,230,341

Statement of Resources (Budgetary and Non‐Budgetary)

Delta Regional Authority

Year Ended September 30, 2021

The accompanying notes are an integral part of these financial statements. 32
Federal

State and

Other RCAP Combined

Budgetary

Non‐

Budgetary Non‐Budgetary

Budgetary and

Non‐Budgetary

Budgetary resources

Unobligated balance from prior year budget

authority, net (discretionary and mandatory) 11,417,441 $      $    3,428,886 $                4,348 $      14,850,675

Appropriations (discretionary/mandatory) 30,000,000         ‐                         ‐                                     30,000,000

Spending authority from offsetting

collections (discretionary and mandatory) 1,538,300                 2,031,792           1,170,224           4,740,316

Total resources $     42,955,741 $    5,460,678 $        1,174,572 $      49,590,991

Status of budgetary resources

New obligations and upward adjustments $      ‐ 35,294,849 $                      ‐ $                          $      35,294,849

Unobligated balances/unexpended funds,

end of year

Apportioned, unexpired accounts 9,158,148                         ‐ ‐                                       9,158,148

Unapportioned, unexpired accounts (1,497,256)          ‐                         ‐                                      (1,497,256)

Unexpired unobligated balance, end of year 7,660,892           ‐                         ‐                                       7,660,892

Unexpended funds                           ‐       3,929,933                (30,700)           3,899,233

Unobligated/Unexpended balance, end of year 7,660,892 3,929,933                       (30,700) 11,560,125

Total budgetary resources $     42,955,741 $    3,929,933 $             (30,700) $      46,854,974

Change in obligated balances (memorandum)

(non‐add) entries)

Unpaid obligated balance, net,

beginning of year 49,891,092 $      $          54,018 $            101,440 $      50,046,550

New obligations and upward adjustments 35,294,849               1,530,745           1,205,272         38,030,866

Other 134,401               ‐                         ‐                                           134,401

Gross outlays (21,544,956)             (1,465,508)          (1,255,367)        (24,265,831)

Recoveries of prior year unpaid obligations                 (1,000)                         ‐                              ‐                   (1,000)

Unpaid obligated balance, net, end of year

Undelivered orders 61,646,781                         ‐ ‐                                     61,646,781

Accounts payable 2,127,605 119,255            51,345 2,298,205           

Total obligated balance, net, end of year $     63,774,386 $       119,255 $              51,345 $      63,944,986

Outlays, net  

Outlays, net (total) (discretionary and

mandatory) 20,006,656 $      $      (566,284) $              85,143 $      19,525,515

Agency outlays, net (discretionary and

mandatory) $     20,006,656 $      (566,284) $              85,143 $      19,525,515

Delta Regional Authority

Statement of Resources (Budgetary and Non‐Budgetary)

Year Ended September 30, 2020

The accompanying notes are an integral part of these financial statements. 33
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

34

Note 1 – Summary of Significant Accounting Principles

A. Reporting Entity

The Delta Regional Authority (DRA or the Authority) is a federal‐state partnership serving a 252

county/parish area in an eight‐state region. Led by a federal co‐chairman and the governors of each

participating state, DRA is designed to remedy severe and chronic economic distress by stimulating

economic development and fostering partnerships that will have a positive impact on the region’s

economy.  DRA helps economically distressed communities take advantage of other federal and state

programs focused on basic infrastructure development and transportation improvements, business

development and job training services. The federal and alternate federal co‐chairman seats are vacant

at the end of the current fiscal year.  

The Authority is a party to allocation transfers with other federal agencies as a transferring (parent)

entity. Allocation transfers are legal delegations by one department of its authority to obligate budget

authority and outlay funds to another department. A separate fund account (allocation account) is

created in the U.S. Department of Treasury (Treasury) as a subset of the parent fund account for tracking

and reporting purposes.  All allocation transfers of balances are credited to this account, and subsequent

obligations and outlays incurred by the child entity are charged to this allocation account as they

execute the delegated activity on behalf of the parent entity.  Generally, all  financial  activity  related  

to  these  allocation  transfers  (e.g.,  budget authority, obligations, outlays) is reported in the financial

statements of the parent entity from which  the  underlying  legislative  authority,  appropriations  and  

budget apportionments are derived. The Authority allocates funds, as the parent, to the United States

Department of Agriculture (USDA) and the U.S. Economic Development Administration (EDA).

B. Basis of Presentation

These basic statements have been prepared from the accounting records of DRA in accordance with

accounting principles generally accepted in the United States of America (GAAP) and the form and

content for entity financial statements specified by the President’s Office of Management and Budget

(OMB) in OMB Circular No. A‐136, Financial Reporting Requirements, as amended.   GAAP, for federal

entities, are standards prescribed by the Federal Accounting Standards Advisory Board (FASAB), which

has been designated as the official accounting standards setting body for the federal government by

the American Institute of Certified Public Accountants (AICPA).

OMB Circular No. A‐136 requires agencies to prepare basic statements, which include a balance sheet,

statement of net cost, statement of changes in net position and statement of resources(budgetary

and non‐budgetary).   The balance sheets present, as of September 30, 2021 and 2020, amounts of

future economic benefits owned or managed by DRA (assets), amounts owed by DRA (liabilities),

and amounts which comprise the difference (net position).  The statements of net cost report the full

cost of the program, both direct and indirect costs of the output, and the costs of identifiable supporting

services provided by other segments within DRA and other reporting entities. The statements of

changes in net position reflect financing sources available to DRA, the cost of its operations and the

net change in its financial position. The statements of resources (budgetary and non‐budgetary) report

an agency’s budgetary activity.
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

35

C. Basis of Accounting

Transactions are recorded on both the accrual and budgetary basis.   Under the accrual basis of

accounting, revenues are recognized when earned, and expenses are recognized when a liability is

incurred, without regard to receipt or payment of cash. Budgetary accounting facilitates compliance

with legal constraints on, and control of, the use of federal funds. The accompanying balance sheets,

statements of net cost and statements of changes in net position have been prepared on an accrual

basis.  The statements of resources (budgetary and non‐budgetary) have been prepared in accordance

with budgetary accounting rules.

D. Management of Financial Records

Federal appropriations are managed for DRA by the General Services Administration (GSA). Using the

government‐wide standard general ledger system (SGL), accounting transactions are initiated at DRA

and ultimately entered into the accounting records by GSA. These transactions are designated in the

accompanying financial statements as “Federal.”  

DRA   invoices   and   receives   funds   from   the   various   member   states   to   be   used   to   pay

administrative costs.    This process meets the requirement of originating legislation which stipulates

that “IN GENERAL ‐ Administrative expenses of the Authority (except for the expenses of the federal

co‐chairperson, including expenses of the alternate and staff of the federal co‐chairperson, which

shall be paid solely by the federal government) shall be paid (A) by the federal government, in an

amount equal to 50% of the administrative expenses; and (B) by the states in the region participating

in the Authority, in an amount equal to 50% of the administrative expenses.” The funds received from

the states are maintained in a local bank account, and transactions are initiated and managed by DRA

staff. These transactions are designated in the accompanying financial statements as “State and Other.”

E. Use of Estimates

The preparation of financialstatementsin conformity with U.S. generally accepted accounting principles

requires management to make estimates and assumptions that affect the reported amount of assets

and liabilities and disclosure of contingent    assets    and    liabilities    at   the    date    of   the   financial  

statements  and  the  reported amounts of revenues, expenses and other changes in net position during

the reporting period. Actual results could differ from those estimates.

F. Revenues and Other Financing Sources

DRA is a federal/state partnership and receives appropriations. Other financing sources for DRA consist

of imputed financing sources which are costs financed by other federal entities on behalf of DRA, as

required by Statement of Federal Financial Accounting Standard (SFFAS) No. 5, Accounting for Liabilities

of the Federal Government. DRA also had a reimbursable agreement with the Economic Development

Authority (EDA) during fiscal year 2019, 2020 and 2021, and the Department of Labor (DOL) in fiscal year

2020 and 2021.

   
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

36

G. Cash

At September 30, 2021 and 2020, cash consisted of deposit accounts with various financial institutions

and all accounts were fully insured or otherwise collateralized.

H. General Property and Equipment

Property and equipment is stated at cost, less accumulated depreciation. DRA capitalizes property and

equipment with an acquisition cost of $5,000 or more and a useful life exceeding two years.

Depreciation is charged to expense using the straight‐line method over the estimated useful life of five

years for equipment. Leasehold improvements are amortized over the estimated period of occupancy

or the life of the improvement, whichever isless. Expendituresfor repairs and maintenance are charged

to operating expense as incurred.

I. Compensated Absences

The Authority’s policies permit employees to accumulate annual and sick leave benefits that may be

realized as paid time off.  Expense and the related liability are recognized as annual leave benefits are

earned.  Sick leave benefits expected to be realized as paid time off are recognized as expense when the

time off occurs, and no liability is accrued for such benefits employees have earned but not yet realized.  

The maximum accrual of annual leave is 480 hours, and there is no maximum accumulation ofsick leave.  

Compensated absence liabilities for annual leave are computed using the regular pay and termination

pay rates in effect at the balance sheet date, plus an additional amount for compensation‐related

payments such as Social Security, Medicare taxes and retirement computed using rates in effect at that

date.

J. Net Position

Net position is the residual difference between assets and liabilities and is comprised of unexpended

appropriations and cumulative results of operations. Unexpended appropriations represent the amount

of unobligated and unexpended budget authority. Unobligated balances are the amount of

appropriations or other authority remaining after deducting the cumulative obligationsfrom the amount

available for obligation. The cumulative results of operations are the net results of the Authority’s

operations since inception.  

K. Net Cost of Operations

Earned revenues arise from the collection of state contributions and other inter‐agency agreements are

deducted from the full cost of the Authority’s major programs to arrive at net program cost. Earned

revenues are recognized by the Authority to the extent reimbursements are payable from the public, as

a result of costs incurred for services performed on the public’s behalf.  

   
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

37

L. Tax Exempt Status

As an instrumentality of the federal government, the Authority is exempt from income taxesimposed by

any governing body whether it is a federal, state, commonwealth, local, or foreign government and

exempt from sales and use taxes of the District of Columbia.  

M. Classified Activities  

Accounting standards require all reporting entities to disclose that accounting standards allow certain

presentations and disclosures to be modified, if needed, to prevent the disclosure of classified

information.

Note 2 – Fund Balance with Treasury

DRA’s fund balance with Treasury comes from appropriations and the reimbursable agreement with the

DOT, DOL and EDA. Funds with the U.S. Treasury represent obligated and unobligated no‐year funds

available to finance allowable current and future expenditures. A summary of DRA’s fund balance with

Treasury follows:

2021 2020

Fund balance with Treasury

General fund 77,737,898 $    $   71,300,877

Status of fund balance with treasury

Unobligated balance

Available 33,427,022 $    $     7,660,892

Unavailable                       ‐          (134,401)

Obligated balance not yet disbursed 44,310,876            63,774,386

Total 77,737,898 $    $   71,300,877

Note 3 – Accounts Receivable, Net

Receivables  are made  up  of  amounts  due  from the  USDA,  which  is  a  major granting agency  for  

DRA, the  Rural  Community  Assistance  Program  (RCAP), and a $20,000 balance due from the state of

Missouri for an underpayment of their FY 2021 state assessment. At September 30, 2021, $49,720 was

due from USDA for subgrantee expenses recorded in the financial statements as program costs, $38,667

was due from USDA for administrative expenses; and $97,291 was due from a parish in Louisiana for a

recoup of an RCAP project where the subgrantee did not complete certain requirements to maintain

eligibility under this program. This money issubsequently being remitted to the USDA. At September 30,

2020, $51,345 was due from USDA for subgrantee expenses recorded in the financial statements as

program costs; $23,712 was due from USDA for administrative expenses; and $97,291 was due from a

parish in Louisiana for the project discussed above. DRA has historically collected any receivables due

and thus has not established an allowance for uncollectible accounts.  

   
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

38

Note 4 – General Property and Equipment, Net

General property and equipment balance consists of a vehicle with a total cost of $52,895, accumulated

depreciation of $5,089 and a net book value of $47,806 at September 30, 2021. Vehicles are depreciated

over a five‐year estimated useful life. Depreciation expense for the fiscal year ended September 30, 2021

was $46,654. All vehicles purchased in prior years were disposed and one additional vehicle was acquired

in July of the current fiscal year.

General property and equipment balance consists of vehicles with a total cost of $255,995, accumulated

depreciation of $179,652 and a net book value of $76,343 at September 30, 2020. Vehicles are

depreciated over a five‐year estimated useful life. Depreciation expense for the fiscal year ended

September 30, 2020, was $41,563.  

Note 5 – Funds Received as Assessments from Member States  

Funds received as assessments from the various member states are maintained in DRA’s general bank

account separate from all other cash. These assessments are included with cash in the accompanying

balance sheets. The states are required, by originating legislation, to pay 50% of the administrative costs

of DRA.  Amounts billed to the states are calculated at the beginning of each fiscal year and are based

on the states’ 50% assessment of DRA administrative costs. The following table indicates funds on hand

received from member states.

2021 2020

Balance of state funds on hand, beginning of year $                 ‐ ‐ $                   

Current year billed to and received from states 1,175,741            1,173,913

Total available from states 1,175,741 $   $    1,173,913

Balance of state funds on hand, end of year $                 ‐ ‐ $                   

Note 6 – Liabilities Covered and Not Covered by Budgetary Resources

Liabilities not covered by budgetary resources are liabilities for which congressional action (DRA

appropriation bill) is needed before budgetary resources can be provided.  Liabilities of DRA are classified

as liabilities covered or not covered by budgetary resources (DRA state assessments, transfers/grants

from other agencies). They are as follows:
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

39

Liabilities not covered by budgetary resources 2021 2020

Leave liability (state and other) 118,020 $       $     120,203

Accounts payable (state and other) 54,355                   119,255

Deferred inflows from grants (RCAP) 33,424                     66,547

Deferred inflows from assessments (state and other) 107,548                 125,000

Grants payable (RCAP) 138,720                 134,345

Due to USDA (RCAP) 97,291                   103,291

Total liabilities not covered by budgetary resources 549,358                 668,641

Liabilities covered by budgetary resources 2021 2020

Intragovernmental

Employer contributions and payroll taxes payable                     ‐ 2,681

Liability for advances and prepayments 3,798,757       5,512,312

Total intragovernmental 3,798,757           5,514,993

With the public

Accounts payable 1,603,947       1,780,797

Accrued funded payroll and leave                     ‐ 9,046

Employer contributions and payroll taxes payable                     ‐ 452

Total with the public 1,603,947           1,790,295

Total liabilities covered by budgetary resources 5,402,704           7,305,288

Total liabilities    $   5,952,062 $  7,973,929

Other liabilities are classified as current.

Note 7 – Operating Leases

DRA leases its primary operating facilities, including substantially all furniture and fixtures used, under a

three year operating lease arrangement with Coahoma County, Mississippi. DRA also leases space for

the Little Rock office and a space for the Washington D.C. office from State Services Organization, Inc.

under a six year operating lease arrangement. Future minimum lease payments at September 30, 2021

are as follows:  

Fiscal Year Amount

2022 83,451 $      

2023 50,950         

2024 52,224         

2025 53,529         

2026 54,867         

2027 13,801         

Total 308,822 $    
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

40

The lease with Coahoma County may be terminated by DRA should DRA fail to receive funding from the

United States, the existence of DRA be terminated, orshould the governing body of DRA choose to move

DRA’s office outside Coahoma County, Mississippi. The lease with the State Services Organization, Inc.

may also be terminated for the above reasons. However, DRA will be liable for four months of base rent

upon early termination of the State Services Organization, Inc. lease agreement. The DFA lease

agreement requires termination through a 180 days’ written notice if funds are insufficient for the DRA

to continue operations where office space is being used.  Rental expense was $141,272 and $145,179

for the years ended September 30, 2021 and 2020, respectively.

Note 8 – Inter‐Entity Costs

DRA recognizes certain inter‐entity costs for goods and services that are received from other federal

entities at no cost or at a cost less than the full cost. Certain costs of the providing entity that are not

fully reimbursed are recognized as imputed cost and are offset by imputed revenue. Such imputed costs

relate to employee benefits. DRA recognizes as inter‐entity costs the amount of accrued pension and

post‐retirement benefit expenses for current employees. The assets and liabilities associated with such

benefits are the responsibility of the administering agency, Office of Personnel Management. For the

periods ended September 30, 2021 and 2020, respectively, inter‐entity costs were $3,152 and $7,688,

respectively.  

Note 9 – Apportionment Categories of Obligations Incurred

The direct obligations are obligations incurred against amounts apportioned under category B on the

latest Standard Form (SF) 132. The reimbursable obligations are those incurred against the reimbursable

agreements with Treasury.  A summary of these obligations are as follows:

2021 2020

Direct ‐ category B grants 2,749,578 $     $  31,271,132

Direct ‐ category B administration 1,295,405              1,096,148

Reimbursed ‐ category B grants 188,888                 2,793,780

Reimbursed ‐ category B administration                      ‐          133,789

Total obligations 4,233,871 $     $  35,294,849

   
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

41

Note 10 – Undelivered Orders at the End of the Period

The amount of the DRA’s budgetary resources obligated for unpaid undelivered orders was $40,884,508

and $61,646,781 as of September 30, 2021 and 2020, respectively.

Unpaid   Paid   Total

Intragovernmental

2021 (2,803) $                   ‐ $                     $           (2,803)

2020 (2,023) $                   ‐ $                     $           (2,023)

With the Public

2021 40,887,311 $           ‐ $                     $    40,887,311

2020 61,648,804 $           ‐ $                     $    61,648,804

Undelivered Orders

Note 11 – Explanation of the Relationship Between Liabilities Not Covered by Budgetary Resources on

the Balance Sheets and the Change in Components Requiring or Generating Resources in the Future

Periods

Liabilities not covered by budgetary resources totaled $577,475 and $668,641 at September 30, 2021

and 2020, respectively. The changes are the net increase/decrease of future funded expensesfor annual

leave and represent the difference between appropriations of annual funds for the prior and current

annual funds.  Accrued funded payroll liability is covered by budgetary resources and is included in the

net cost of operations. The unfunded leave liability includesthe expense related to the increase in annual

leave liability for which the budgetary resources will be provided in a subsequent period. There were no

increases/decreases in components requiring resources in future periods on September 30, 2021 and

2020.

Note 12 – Costs and Exchange Revenue

Intragovernmental costs are those good/services purchased from a federal entity:

2021 2020

Program Costs

Intragovernmental costs 179,804 $         $        243,532

Public costs 25,825,181 24,388,530

Total program costs 26,004,985            24,632,062

Less: intragovernmental earned revenue 1,847,957 1,010,507

Total net program costs 24,157,028 $    $   23,621,555

   
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

42

Note 13 – Pension Plans

Plan Description

The Authority contributes to a defined contribution 401(k) plan covering all non‐federal employees.

Retirement expense is recorded for the amount of the Authority’s required contributions, determined

in accordance with the terms of the plan.  The plan is administered by Advanced Data Processing, Inc.

The plan provides retirement and death benefits to plan members and their beneficiaries. Benefit

provisions are contained in the Plan Document and were established and can be amended by action of

the Authority’s governing body.

Additionally, the Authority’sfederal employees participate in the Federal Employees’ Retirement System

(FERS), a cost‐sharing, multiple‐employer defined benefit pension plan. FERS provides retirement and

disability benefits, annual cost‐of‐living adjustments and death benefits to the plan members and

beneficiaries.

Funding Policy

Contributions made by the Authority to the 401(k) defined contribution plan amounted to approximately

$170,000 and $144,000 for the years ended September 30, 2021 and 2020, respectively.

FERS covered employees, depending upon his or her hire date, are required to contribute between 0.8%

and 4.4% of their annual covered salary. The Authority was required to contribute 11.9% of annual

covered payroll. The Authority’s contributionsto FERS forthe years ended September 30, 2021 and 2020,

were approximately $39,357 and $29,277, respectively, which equaled the required contributions for

each year.

Note 14 – Risk Management

The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction  of  

assets;  business  interruption;  errors  and  omissions;  employee  injuries  and illnesses; natural disasters

and employee health and accident benefits.  Commercial insurance coverage is purchased for claims

arising from such matters other than those related to errors and omissions and natural disasters.  Settled

claims have not exceeded this commercial coverage in any of the three preceding years.

Note 15 – Explanation of Differences between the Statement of Budgetary Resources and the Budget

of the United States Government

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling

Budgetary and Financial Accounting, requires an explanation of material differences between budgetary

resources available, the status of those resources and outlays as presented in the Statement of

Budgetary Resources to the related actual balances published in the Budget of the United States

Government (Budget). Budgetary resources made available to DRA include current appropriations,

unobligated appropriations and recoveries of prior year obligations.  The Budget that will include the FY

2021 actual budgetary execution information is scheduled for publication in February 2022, which will

be available through OMB’s website (http://www.whitehouse.gov/omb). Accordingly, information
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

43

required for such disclosure is not available at the time of publication of these financial statements.

Balances reported in the FY 2020 SBR and the related President’s Budget reflected the following:

FY2020

Budgetary

Resources

New

Obligations and

Upward

Adjustments  

Distributed

Offsetting

Receipts   Net Outlays

Statement of

Budgetary Resources 42,955,741 $   $       ‐ 35,294,849 $                  $  20,006,656

Budget of the U.S.

Government     43,000,000         36,000,000     21,000,000

$        (44,259) $          ‐ (705,151) $                  $      (993,344)

The difference between the Statement of Budgetary Resources and the Budget of the United States

Government for budgetary resources, obligationsincurred and net outlays are primarily due to rounding.

Note accrued funded payroll liability is covered by budgetary resources and is included in the net cost of

operations, whereas unfunded annual leave liability includes the expense related to the increase in

annual leave liability for which the budgetary resources will be provided in a subsequent period.

Note 16  – Net Adjustments To Unobligated Balance, Brought Forward, October 1

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for recoveries of

prior year paid and unpaid obligations and other changes such as canceled authority. The Adjustments

to Unobligated Balance Brought Forward, October 1, as of September 30, 2021, and 2020, consisted of

recoveries of prior year obligations totaling $0 and $1,000, respectively.

Note 17 – Reconciliation of Net Cost of Operations (Proprietary) to Budget

Budgetary resources obligated are obligations for personnel, goods, services, benefits, etc., made by the

Authority in order to conduct operations or acquire assets.    Other (i.e., non‐budgetary) financing

resources are also utilized by the Authority in its program (proprietary) operations. For example,  

spending   authority   from   offsetting    collections   and   recoveries   are   financial resources from the

recoveries of prior year obligations (e.g., the completion of a contract in which not all the funds were

used) and refunds or other collections (i.e., funds used to conduct operations that were previously

budgeted).    An imputed financing source is recognized for future federal employee benefits costs

incurred for the Authority employees that will be funded by Office of Personnel Management (OPM).  

Changes in budgetary resources obligated for goods, services and benefits ordered but not yet provided

represent the difference between the beginning and ending balances of undelivered orders (i.e., goods

and services received during the year based on obligations incurred the prior year represent a cost of

operations not funded from budgetary resources).  Resources that finance the acquisition of assets are

budgetary resources used to finance assets and net cost of operations (e.g., increases in accounts

receivables or capitalized assets). Financing sources yet to be provided represent financing that will be

provided in future periods for future costs that are recognized in determining the net cost of operations
Delta Regional Authority

Notes to Financial Statements

September 30, 2021 and 2020

44

for the present period.  Finally, components not requiring or generating resources are costs included in

the net cost of operations that do not require resources (e.g., depreciation and amortized expenses of

assets previously capitalized).

A reconciliation between budgetary resources obligated and net cost of operations (i.e., providing an

explanation between budgetary and proprietary accounting) is as follows:

2021 2020

Budgetary resources obligated $    4,233,871   $  35,293,105

Spending authority from recoveries and offsetting

collections                       ‐       (1,538,300)

Imputed financing from costs absorbed by others               3,152                7,688

Disbursements of funds provided by member states and

others        1,242,191         1,530,745

Disbursements of RCAP funds        1,423,040         1,205,272

Change in budgetary resources obligated for goods,

services and benefits ordered but not yet provided 17,254,774         (12,876,955)

Net cost of operations $  24,157,028   $  23,621,555

Note 18 – Subsequent Events

DRA has evaluated subsequent events occurring after the balance sheet date and through the date of

November 15, 2021, the date the financial statements were available for release. Based upon this

evaluation, DRA has determined that no subsequent events have occurred which require disclosure in

the financial statements.
Federal

State and

Other RCAP Total

Assets

Intragovernmental:

Fund balance with Treasury 77,737,898 $   ‐ $                    ‐ $                $  77,737,898

Total intragovernmental 77,737,898      ‐                       ‐                        77,737,898

Other than ingragovernmental/With the public:

Cash                         ‐     4,661,167       88,748        4,749,915

Accounts receivable, net                         ‐           20,000     185,678           205,678

General property and equipment, net                         ‐            ‐ 47,806                                47,806

Total other than ingragovernmental/With the

public                         ‐     4,728,973     274,426        5,003,399

Total assets 77,737,898          4,728,973     274,426     82,741,297

Liabilities

Intragovernmental:

Employer contributions and payroll taxes

payable                          ‐ ‐                       ‐                    ‐                         

Liability for advances and prepayments 3,798,757         ‐                       ‐                           3,798,757

Total intragovernmental 3,798,757         ‐                       ‐                           3,798,757

Other than ingragovernmental/With the public:

Interfund transfers 162,878                  (198,569)        ‐ 35,691                         

Accounts payable 1,603,947                    ‐ 54,355                           1,658,302

Grants and other payables                         ‐        107,548     269,435           376,983

Accrued funded payroll and leave                         ‐         ‐ 118,020                              118,020

Total other than ingragovernmental/With the

public 1,         766,825           81,354     305,126        2,153,305

Total liabilities 5,565,582                   81,354     305,126        5,952,062

Net position

Unexpended appropriations ‐ all other funds

(consolidated totals) 72,172,316          4,647,619      (30,700)     76,789,235

Cumulative results of operations ‐ all other

funds (consolidated totals)                          ‐ ‐                       ‐                    ‐                         

Total net position 72,172,316          4,647,619      (30,700)     76,789,235

Total liabilities and net position 77,737,898 $   $  4,728,973 $  274,426 $  82,741,297

Delta Regional Authority

Combining Balance Sheet

September 30, 2021

45
Federal

State and

Other RCAP Total

Assets

Intragovernmental

Fund balance with Treasury 71,300,877 $   ‐ $                    ‐ $                $  71,300,877

Total intragovernmental 71,300,877      ‐                       ‐                        71,300,877

Other than ingragovernmental/With the public:

Cash                         ‐ 3,859,708 124,847 3,984,555        

Accounts receivable, net                          ‐ ‐                           172,348           172,348

General property and equipment, net                         ‐ 76,343                   ‐             76,343

Total other than ingragovernmental/With the

public                         ‐     3,936,051     297,195        4,233,246

Total assets 71,300,877          3,936,051     297,195     75,534,123

Liabilities

Intragovernmental

Employer contributions and payroll taxes

payable 2,681 $             ‐ $                    ‐ $                $            2,681

Liability for advances and prepayments 5,512,312         ‐                       ‐                           5,512,312

Total intragovernmental 5,514,993         ‐                       ‐                           5,514,993

Other than ingragovernmental/With the public:

Interfund transfers 334,628                  (358,340)        ‐ 23,712                         

Accounts payable 1,780,797 119,255         ‐                           1,900,052

Grants and other payables 452                           125,000 304,183 429,635           

Accrued funded payroll and leave 9,046                 120,203                   ‐           129,249

Total other than ingragovernmental/With the

public

Total liabilities 7,639,916                     6,118     327,895        7,973,929

Net position

Unexpended appropriations ‐ all other funds

(consolidated totals) 63,660,961          3,929,933      (30,700)     67,560,194

Cumulative results of operations ‐ all other

funds (consolidated totals)                          ‐ ‐                       ‐                    ‐                         

Total net position 63,660,961          3,929,933      (30,700)     67,560,194

Total liabilities and net position 71,300,877 $   $  3,936,051 $  297,195 $  75,534,123

Delta Regional Authority

Combining Balance Sheet

September 30, 2020

46
Delta Regional Authority

Combining Statement of Net Cost

Year Ended September 30, 2021

Federal

State and

Other RCAP Total

Program cost

Council of Inspectors General on

Integrity and Efficiency

Gross costs 23,339,754 $   $  1,242,191 $   1,423,040 $   26,004,985

Less: earned revenue (1,847,957)       ‐                       ‐                              (1,847,957)

Total net program cost 21,491,797          1,242,191      1,423,040      24,157,028

Net cost of operations 21,491,797 $   $  1,242,191 $   1,423,040 $   24,157,028

47
Delta Regional Authority

Combining Statement of Net Cost

Year Ended September 30, 2020

Federal

State and

Other RCAP Total

Program cost

Council of Inspectors General on

Integrity and Efficiency

Gross costs 21,896,045 $   $  1,530,745 $   1,205,272 $   24,632,062

Less: earned revenue (1,010,507)       ‐                       ‐                              (1,010,507)

Total net program cost 20,885,538          1,530,745      1,205,272      23,621,555

Net cost of operations 20,885,538 $   $  1,530,745 $   1,205,272 $   23,621,555

48
Federal

State and

Other RCAP Total

Unexpended appropriations

Beginning balance $ 63,660,961   $ 3,929,933   $    (30,700) $ 67,560,194

Appropriations received     30,000,000                       ‐                       ‐      30,000,000

Appropriations used    (21,488,645)                      ‐                       ‐     (21,488,645)

Other:

Cost of operations absorbed by member

states and others                         ‐      1,959,877                       ‐         1,959,877

Cost of operations absorbed by RCAP                         ‐                       ‐      1,423,040         1,423,040

Disbursements of funds provided by

member states and others                         ‐    (1,242,191)                      ‐       (1,242,191)

Disbursements of RCAP funds                         ‐                       ‐    (1,423,040)      (1,423,040)

                     ‐ 

Change in unexpended appropriations        8,511,355          717,686                       ‐         9,229,041

Total unexpended appropriations $ 72,172,316   $ 4,647,619   $    (30,700) $ 76,789,235

Cumulative results of operations

Beginning balance $ 63,660,961   $ 3,929,933   $    (30,700) $ 67,560,194

Appropriations used 21,488,645                       ‐                       ‐      21,488,645

Other:

Imputed financing from costs absorbed by

others                3,152                       ‐                       ‐                 3,152

Disbursements of RCAP funds                         ‐                       ‐      1,423,040         1,423,040

Disbursements of funds provided by

member states and others                         ‐      1,242,191                       ‐         1,242,191

Net cost of operations     21,491,797      1,242,191      1,423,040      24,157,028

Change in cumulative results of operations                         ‐                       ‐                       ‐                          ‐ 

Cumulative results of operations

Net position $ 72,172,316   $ 4,647,619   $    (30,700) $ 76,789,235

Year Ended September 30, 2021

Delta Regional Authority

Combining Statement of Changes in Net Position

49
Federal

State and

Other RCAP Total

Unexpended appropriations

Beginning balance $ 54,538,811   $ 3,428,886   $        4,348   $ 57,972,045

Appropriations received     30,000,000                       ‐                       ‐      30,000,000

Appropriations used    (20,877,850)                      ‐                       ‐     (20,877,850)

Other:

Cost of operations absorbed by member

states and others                         ‐      2,031,792                       ‐         2,031,792

Cost of operations absorbed by RCAP                         ‐                       ‐      1,170,224         1,170,224

Disbursements of funds provided by

member states and others                         ‐    (1,530,745)                      ‐       (1,530,745)

Disbursements of RCAP funds                         ‐                       ‐    (1,205,272)      (1,205,272)

Change in unexpended appropriations        9,122,150          501,047          (35,048)        9,588,149

Total unexpended appropriations $ 63,660,961   $ 3,929,933   $    (30,700) $ 67,560,194

Cumulative results of operations

Beginning balance $                     ‐   $                  ‐   $                 ‐   $                     ‐ 

Appropriations used     20,877,850                       ‐                       ‐      20,877,850

Other:

Imputed financing from costs absorbed by

others 7,688                       ‐                       ‐                 7,688

Disbursements of RCAP funds                         ‐                       ‐      1,205,272         1,205,272

Disbursements of funds provided by

member states and others                         ‐      1,530,745                       ‐         1,530,745

Net cost of operations     20,885,538      1,530,745      1,205,272      23,621,555

Change in cumulative results of operations                         ‐                       ‐                       ‐                          ‐ 

Cumulative results of operations

Net position $ 63,660,961   $ 3,929,933   $    (30,700) $ 67,560,194

Delta Regional Authority

Combining Statement of Changes in Net Position

Year Ended September 30, 2020

50
Delta Regional Authority

Year Ended September 30, 2021

Federal

State and

Other RCAP Total

Resources used to finance activities

Budgetary resources obligated

Obligations incurred $    4,233,871   $                  ‐   $                   ‐  $     4,233,871

Less: spending authority from offsetting collections and

recoveries                         ‐ ‐                 ‐                       ‐                         

Obligations net of offsetting collections and recoveries 4,233,871                             ‐  ‐                               4,233,871

Net obligations 4,233,871                             ‐  ‐                               4,233,871

Other resources

Imputed financing from costs absorbed by others 3,152                                     ‐  ‐                                      3,152

Disbursements of funds provided by member states and

others                               ‐ 1,242,191  ‐                               1,242,191

Disbursements of RCAP funds                                              ‐  ‐      1,423,040         1,423,040

Net other resources used to finance activities 3,152                     1,242,191      1,423,040         2,668,383

Total resources used to finance activities 4,237,023             1,242,191      1,423,040         6,902,254

Resources used to finance items not part of the net cost of

operations

Change in budgetary resources obligated for goods, services

and benefits ordered but not yet provided (17,254,774)                          ‐  ‐                           (17,254,774)

Total resources used to finance items not part of the net cost

of operations (17,254,774)     ‐                       ‐                           (17,254,774)

Total resources used to finance net cost of operations 21,491,797           1,242,191      1,423,040      24,157,028

Components of the net cost of operations that will require or

generate resources in the future periods

Increase in annual leave liability                                              ‐  ‐ ‐                       ‐                         

Total components of the net cost of operations that will

require or generate resources in the future periods                                              ‐  ‐ ‐                       ‐                         

Total resources used to finance the net cost of operations $  21,491,797 $  1,242,191 $   1,423,040 $   24,157,028

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget

51
Delta Regional Authority

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget

Year Ended September 30, 2020

Federal

State and

Other RCAP Total

Resources used to finance activities

Budgetary resources obligated

Obligations incurred 35,294,849 $    $                  ‐  ‐ $                    $   35,294,849

Less: spending authority from offsetting collections and

recoveries 1,537,300                             ‐  ‐                               1,537,300

Obligations net of offsetting collections and recoveries 33,757,549                           ‐  ‐                            33,757,549

Net obligations 33,757,549                           ‐  ‐                            33,757,549

Other resources

Imputed financing from costs absorbed by others 7,688                                     ‐  ‐                                      7,688

Disbursements of funds provided by member states and

others                               ‐ 1,530,745  ‐                               1,530,745

Disbursements of RCAP funds                                              ‐  ‐      1,205,272         1,205,272

Net other resources used to finance activities 7,688                     1,530,745      1,205,272         2,743,705

Total resources used to finance activities 33,765,237           1,530,745      1,205,272      36,501,254

Resources used to finance items not part of the net cost of

operations

Change in budgetary resources obligated for goods, services

and benefits ordered but not yet provided 12,879,699                           ‐  ‐                            12,879,699

Total resources used to finance items not part of the net cost

of operations 12,879,699      ‐                       ‐                            12,879,699

Total resources used to finance net cost of operations 20,885,538           1,530,745      1,205,272      23,621,555

Components of the net cost of operations that will require or

generate resources in the future periods

Increase in annual leave liability                                              ‐  ‐ ‐                       ‐                         

Total components of the net cost of operations that will

require or generate resources in the future periods                                              ‐  ‐ ‐                       ‐                         

Total resources used to finance the net cost of operations $  20,885,538 $  1,530,745 $   1,205,272 $   23,621,555

52
Federal State and Other RCAP Total

Grants, subsidies and contributions 20,183,276 $    ‐ $                           $   1,423,040 $   21,606,316

Consulting and other services 518,514             274,356                       ‐ 792,870

Employee benefits 175,856             177,070                       ‐ 352,926

Personnel services 447,990             536,775                       ‐ 984,765

Travel and transportation of persons 20,854               23,052                       ‐ 43,906

Rent, communications and utilities 97,744               54,504                       ‐ 152,248

Supplies and materials 34,059               69,235                       ‐ 103,294

Printing and reproduction 4,410                  4,235                       ‐ 8,645

Office expense 9,094                  102,964                       ‐ 112,058

Total expenditures 21,491,797 $    $          1,242,191 $   1,423,040 $   24,157,028

Year Ended September 30, 2021

Delta Regional Authority

Schedule of Expenditures

Paid From

53
DRA

Obligated Total Funds

Funding

%

DRA

Obligated Total Funds

Funding

%

DRA

Obligated 

Basic public infrastructure $                     ‐ ‐ $ 0.0% 7,981,735 $ $ 100,045,036 50.7% 6,537,33

$ 

Transportation infrastructure 2,406,710 23,169,087 100.0% 2,442,861 98,550,612 15.5% 2,695,06

Business development                        ‐ ‐ 0.0% 2,644,661 5,896,998 16.8% 1,552,36

Work development                        ‐ ‐ 0.0% 2,550,088 6,664,388 16.2% 1,860,66

Other                        ‐ ‐ 0.0% 131,000 131,000 0.8% 517,00

$ 2,406,710 $ 23,169,087 100.0% 15,750,345 $ $ 211,288,034 100.0% 13,162,42

$ 

DRA

Obligated State Allocation State %

DRA

Obligated

State

Allocation State %

DRA

Obligated

State allocations

Alabama $                     ‐ ‐ $ 0.0% 1,544,496 $ $ 1,454,239 10.3% 1,627,61

$ 

Arkansas                        ‐ ‐ 0.0% 2,816,649 2,068,162 14.6% 2,266,42Illinois                        ‐ ‐ 0.0% 1,228,976 1,185,209 8.4% 1,057,35

Kentucky                        ‐ ‐ 0.0% 1,358,137 1,316,270 9.3% 1,270,72Louisiana                        ‐ ‐ 0.0% 3,349,352 2,805,549 19.8% 2,565,00Mississippi                        ‐ ‐ 0.0% 671,389 2,183,838 15.4% 1,187,20Missouri 2,406,710        ‐ 100.0% 2,684,961 1,611,112 11.4% 2,033,64

Tennessee                        ‐ ‐ 0.0% 2,096,385 1,545,621 10.9% 1,154,46

$     ‐ 2,406,710 $ 100.0% 15,750,345 $ $ 14,170,000 100.0% 13,162,42

$ 

Obligations may be more than allocated due to deobligation and reobligation of prior years' unused funds.

*The Delta Regional Authority (DRA) consists of a federal member and the Governors of the eight‐states in the region. No approval for new gr

federal member. DRA has been without a federal member since January 20, 2021. Fiscal Year 2021 grant funding will be obligated to new pro

appointee is nominated and/or confirmed by the U.S. Senate.

2021

2020

2020

Delta Regional Authority

Schedule of Grants Made*

Years Ended September 30, 2021, 2020 and 2019

2021
DRA Obligated Total Funds

Funding

%

DRA

Obligated Total Funds

Funding

%

DRA

Obligated 

Basic public infrastructure $                      ‐ ‐ $ 0.0% 8,053,311 $ $ 34,831,060 65.8% 4,883,584 $ Transportation infrastructure  ‐                         ‐ 0.0% 4,047,383 273,456,007 33.1% 895,900 Business development                         ‐ ‐ 0.0%                        ‐ ‐ 0.0%                     

Work development                         ‐ ‐ 0.0%                        ‐ ‐ 0.0%                     

Other                         ‐ ‐ 0.0% 136,405 167,405 1.1%                     

$                      ‐ ‐ $ 0.0% 12,237,099 $ $ 308,454,472 100.0% 5,779,484 $ 

DRA Obligated

State

Allocation State %

DRA

Obligated

State

Allocation State %

DRA

Obligated

State allocations

Alabama $                      ‐ ‐ $ 0.0% 732,249 $ $ 732,249 6.0% 707,390 $ Arkansas                         ‐ ‐ 0.0% 2,509,000 2,509,000 20.5% 445,900 Illinois                         ‐ ‐ 0.0% 457,253 457,253 3.7% 340,621 Kentucky                         ‐ ‐ 0.0% 3,397,133 3,397,133 27.8% 1,195,102 Louisiana                         ‐ ‐ 0.0% 1,324,739 1,324,739 10.8% 1,608,884 Mississippi                         ‐ ‐ 0.0% 2,297,725 2,297,725 18.8% 1,481,587 

Missouri                         ‐ ‐ 0.0%                        ‐ ‐ 0.0%                     Tennessee                         ‐ ‐ 0.0% 1,519,000 1,519,000 12.4%                     

$                      ‐ ‐ $ 0.0% 12,237,099 $ $ 12,237,099 100.0% 5,779,484 $ 

Community Infrastructure Fund (CIF)

Delta Regional Authority

Schedule of Grants Made*

Years Ended September 30, 2021, 2020 and 2019

2021 2020 

*The Delta Regional Authority (DRA) consists of a federal member and the Governors of the eight‐states in the region. No approval for new g

federal member. DRA has been without a federal member since January 20, 2021. Fiscal Year 2021 grant funding will be obligated to new pro

appointee is nominated and/or confirmed by the U.S. Senate.

2021 2020